Reverse Auctions for Purchases of Ecosystem Services: The Effect of Information on Auction Structure Performance
| Author(s) | Duke, Joshua M. | |
| Author(s) | Messer, Kent D. | |
| Author(s) | Lynch, Lori | |
| Author(s) | Li, Tongzhe | |
| Date Accessioned | 2016-03-23T14:22:34Z | |
| Date Available | 2016-03-23T14:22:34Z | |
| Publication Date | 2016-03 | |
| Abstract | Differences between private and public decision-making are quantified using willingness-to-accept (WTA) data collected in artefactual field experiments. Participants first makedecisions in a second-price auction (private rounds) followed by majority-rule voting (public rounds) on the median price collected in the private rounds. Results suggest that other-regarding behavior in the public rounds regarding stigma and disgust can significantly reduce WTA. Chatbox communication can further reduce WTA, and social preferences, education, and unrelated communication are the primary drivers that lead participants to accept significantly lower prices for potentially disgusting tasks. The results have application for sustainable, cost-effective recycled water projects. | en_US |
| Sponsor | Funding for this research was provided by the U.S. Department of Agriculture’s Economic Research Service (ID#58-6000-7-0089). | en_US |
| Citation | Duke, J.M., K.D. Messer, L. Lynch, and T. Li. 2016. “Reverse Auctions for Purchases of Ecosystem Services: The Effect of Information on Auction Structure Performance.” Applied Economics & Statistics Research Report, University of Delaware, RR16-05. | en_US |
| URL | http://udspace.udel.edu/handle/19716/17563 | |
| dc.language | English (US) | |
| Publisher | Department of Applied Economics and Statistics, University of Delaware, Newark, DE. | en_US |
| Part of Series | RR16-05 | |
| Keywords | Reverse auctions | en_US |
| Keywords | Auction efficiency | en_US |
| Keywords | Laboratory experiments | en_US |
| Keywords | Land conservation | en_US |
| Keywords | Ecosystem service markets | en_US |
| Title | Reverse Auctions for Purchases of Ecosystem Services: The Effect of Information on Auction Structure Performance | en_US |
| Type | Research Report | en_US |