Buying environmental services from private landholders using tendering mechanisms are usuallysubject to a budget constraint. Auction theory has mostly focused on target-constrained auctionsand is not well developed for this type of auction. This paper examines the predictive capacity of asimple...

As an alternative to the more traditional fixed-price schemes, governments can run auctions to purchase environmental services from private agents. Governments have so far chosen the discriminatory price (DP) over the uniform price (UP) format. Theoretical and experimental studies have concluded...

By design, tenders are used when costs are unknown. But if costs are unknown, how can we evaluate the tenders, when their evaluation involves measuring their cost-effectiveness? We identify three approaches: theoretical, empirical and experimental. We first use experimental data to compare the...

Buying environmental services from private landholders using auction mechanisms often involves repeated multi-unit procurement-type auctions. These can either be target-constrained or budget-constrained. Most of the theoretical literature has focused on the former, whereas government agencies...

Buying environmental services from private landholders using tendering mechanisms are usually subject to a budget constraint. Auction theory has mostly focused on target-constrained auctions and is less well developed for this type of auction. This paper examines a theoretical model specifically...

Buying environmental services from private landholders using tendering mechanisms are usually subject to a budget constraint. Auction theory has mostly focused on target-constrained auctions and is not well developed for this type of auction. This paper examines the predictive capacity of a...

We argue that previous assessments of discriminatory-price conservation auctions may have systematically overestimated their performance relative to uniform-payment schemes due to an inappropriate counterfactual comparison. We demonstrate that the cost curve (and not the bid curve) is the...