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Exogenous Targeting Instruments with Heterogeneous Agents

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  • John Spraggon

Abstract

This paper investigates the ability of ambient pollution instruments to induce a group of heterogeneous agents to choose a target outcome. Six controlled laboratory sessions were conducted with heterogeneous agents facing ambient pollution instruments with lump sum or proportional fines and bonuses. Sessions are compared with a study of these exogenous targeting instruments and homogenous agents using complete information and certainty [25]. The data show that contracts can indeed be developed that induce heterogeneous groups to choose the target outcome; however, substantial inefficiency and inequality were observed.

Suggested Citation

  • John Spraggon, 2003. "Exogenous Targeting Instruments with Heterogeneous Agents," McMaster Experimental Economics Laboratory Publications 2003-02, McMaster University.
  • Handle: RePEc:mcm:mceelp:2003-02
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    File URL: http://socserv.socsci.mcmaster.ca/econ/mceel/papers/Hetag030501.pdf
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    References listed on IDEAS

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    Cited by:

    1. François Cochard & Anne Rozan, 2010. "Taxe ambiante : un outil adapté à la lutte contre les coulées de boue ? Une étude expérimentale," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 91(3), pages 296-326.
    2. François Cochard & Marc Willinger & Anastasios Xepapadeas, 2002. "Efficiency of Nonpoint Source Pollution Instruments with Externality Among Polluters:An Experimental Study," Working Papers of BETA 2002-20, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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