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The role of mandatory and voluntary joint bidding in promoting efficiency in conservation auction

Author

Listed:
  • Jens Abildtrup
  • Géraldine Bocquého
  • Kene Boun My
  • Anne Stenger
  • Tuyen Tiet

Abstract

We conduct a lab experiment to investigate the impact of voluntary and mandatory joint-bidding schemes on the performance of conservation auctions. Our results suggest that joint bidding increases auction performance compared to the singlebidding baseline. Within the voluntary joint-bidding conditions, a bonus payment incentive improves auction performance by encouraging the subjects to give low bids. However, voluntary joint bidding performs worse than mandatory joint bidding, even with the bonus incentive. Therefore, when implementing voluntary joint bids to ensure high acceptability from landowners compared to mandatory ones, policymakers should carefully consider performance issues.

Suggested Citation

  • Jens Abildtrup & Géraldine Bocquého & Kene Boun My & Anne Stenger & Tuyen Tiet, 2025. "The role of mandatory and voluntary joint bidding in promoting efficiency in conservation auction," Working Papers of BETA 2025-40, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2025-40
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    File URL: http://beta.u-strasbg.fr/WP/2025/2025-40.pdf
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    Keywords

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    JEL classification:

    • C57 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Econometrics of Games and Auctions
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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