Environmental markets have several institutional features that provide a new context for the use of auctions and which have not been studied previously. This paper reports on laboratory experiments testing three auction forms: uniform and discriminatory price sealed bid auctions and an ascending...

Objective – This chapter examines the performance of the market to discover efficient equilibrium under alternative auction designs. Background – Auctions are increasingly being used to allocate emissions allowances (“permits”) for cap and trade and common-pool resource management...

We analyze bidding behavior in large discriminatory price auctions where the number of objects is a non-trivial proportion of the number of bidders. Bidders observe private signals that are affiliated with the common value. We show that the average price in the auction is biased downward from...