A new paradigm in natural resource management has moved towards more decentralized mechanisms to reverse the degradation. One of such mechanisms is a marketable permits system (MPS). Although the properties of MPS have been studied and identified to be effective in controlled laboratory...

The marketable permits systems have been widely suggested as a potential solution for environmental problems. A critical feature in the market is that an agent can be both sellers and buyers of permits, so-called "trader settings." Although properties 10 of the marketable permits in non-trader...