Does the Varian Mechanism Work? -Emissions Trading as an Example

This paper investigates whether Varian's (1994) compensation mechanism can work in a laboratory. The results show that this mechanism does not work as in the theory. We found that the magnitude of penalties crucially affects subjects' behavior.

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Year of publication:	2004-02
Authors:	Hamaguchi, Yasuyo ; Mitani, Satoshi ; Saijo, Tatsuyoshi
Institutions:	Research Institute of Economy, Trade and Industry (RIETI)

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Extent:	application/pdf
Series:	Discussion papers.
Type of publication:	Book / Working Paper
Notes:	20 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005747395