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:	2003
Authors:	Hamaguchi, Yasuyo ; Mitani, Satoshi ; Saijo, Tatsuyoshi
Published in:	International Journal of Business and Economics. - College of Business, ISSN 1607-0704. - Vol. 2.2003, 2, p. 85-96
Publisher:	College of Business
Subject:	emissions trading \| compensation mechanism \| experiments

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Extent:	application/pdf text/html
Type of publication:	Article
Classification:	C91 - Laboratory, Individual Behavior ; D62 - Externalities ; Q25 - Water
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010600164