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Conservation tenders: linking theory and experiments for policy assessment*

Conservation tenders: linking theory and experiments for policy assessment* Auction theory has mostly focussed on target‐constrained auctions and is less well developed for budget‐constrained tenders, which are the norm in environmental policy. This study assesses a theoretical model developed for budget‐constrained tenders in its capacity to predict tendering performance under information deficiencies typical of field applications. If complemented by laboratory experiments, the model is able to make the correct policy recommendation when comparing the tender to an equivalent fixed‐price scheme, even with poor predictive accuracy. This holds even if the policymaker has only limited information on the model’s key input variables. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Australian Journal of Agricultural Resource Economics Wiley

Conservation tenders: linking theory and experiments for policy assessment*

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Publisher
Wiley
Copyright
Copyright © 2013 Wiley Subscription Services, Inc., A Wiley Company
ISSN
1364-985X
eISSN
1467-8489
DOI
10.1111/j.1467-8489.2012.00602.x
Publisher site
See Article on Publisher Site

Abstract

Auction theory has mostly focussed on target‐constrained auctions and is less well developed for budget‐constrained tenders, which are the norm in environmental policy. This study assesses a theoretical model developed for budget‐constrained tenders in its capacity to predict tendering performance under information deficiencies typical of field applications. If complemented by laboratory experiments, the model is able to make the correct policy recommendation when comparing the tender to an equivalent fixed‐price scheme, even with poor predictive accuracy. This holds even if the policymaker has only limited information on the model’s key input variables.

Journal

The Australian Journal of Agricultural Resource Economics – Wiley

Published: Jan 1, 2013

Keywords: ; ; ; ; ; ;

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