Holt, Charles A. and Johnson, Cathleen and Mallow, Courtney and Sullivan, Sean P. (2010): Tragedy of the common canal.
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This paper uses laboratory experiments to investigate the effects of alternative solutions to a common-pool resource with a unidirectional flow. The focus is on the comparative economic efficiency of communications, bilateral “Coasian” bargaining, auctions and price-based allocations. All treatments improve allocative efficiency relative to a baseline environment. Communication and bilateral bargaining are not generally as effective as market allocations. An exogenously imposed, optimal fee results in the greatest efficiency gain, followed by auction allocations that determine the usage fee endogenously.
|Item Type:||MPRA Paper|
|Original Title:||Tragedy of the common canal|
|Keywords:||externalities, experiments, auctions, Coasian bargaining, common pool resource|
|Subjects:||C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C92 - Laboratory, Group Behavior
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies
|Depositing User:||Charles A. Holt|
|Date Deposited:||22. Feb 2010 11:26|
|Last Modified:||13. Feb 2013 06:28|
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