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An Analysis Of Management Agreement Bargaining Under Asymmetric Information

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  • Iain M. Fraser

Abstract

This paper provides a game theoretic analysis of Management Agreements under asymmetric information. A simple two‐period game is employed to represent the Coasian bargaining process which takes place between the farmer and English Nature over the introduction of a Management Agreement. The analysis shows that if the farmer possesses an information advantage and wishes to exploit it to gain an economic rent from the bargaining process, inefficient outcomes are possible. The implications of the analysis for the continued reliance upon voluntarism and Management Agreements for the protection of Sites of Special Scientific Interest are considered.

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  • Iain M. Fraser, 1995. "An Analysis Of Management Agreement Bargaining Under Asymmetric Information," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 20-32, January.
    • Handle: RePEc:bla:jageco:v:46:y:1995:i:1:p:20-32
    DOI: 10.1111/j.1477-9552.1995.tb00749.x
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    Cited by:

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    2. Paul J. Burke, 2016. "Undermined by Adverse Selection: Australia's Direct Action Abatement Subsidies," Economic Papers, The Economic Society of Australia, vol. 35(3), pages 216-229, September.
    3. Fraser, Iain & Chisholm, Tony, 2000. "Conservation or cultural heritage? Cattle grazing in the Victoria Alpine National Park," Ecological Economics, Elsevier, vol. 33(1), pages 63-75, April.
    4. Hanley, Nick & Kirkpatrick, Hilary & Oglethorpe, David & Simpson, Ian, 1995. "Ecological Economic Modelling Of The Conservation Of Threatened Habitats: Heather Moorland In The Northern Isles Of Scotland," Discussion Papers in Ecological Economics 140543, University of Stirling, Department of Economics.
    5. Nong, Duy & Siriwardana, Mahinda, 2017. "Australia’s Emissions Reduction Fund in an international context," Economic Analysis and Policy, Elsevier, vol. 54(C), pages 123-134.
    6. Latacz-Lohmann, Uwe, 2000. "European Agri-Environmental Policy Facing the 21st Century," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 171918, Australian Agricultural and Resource Economics Society.
    7. Chongwoo Choe & Iain Fraser, 1999. "Compliance Monitoring and Agri‐Environmental Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 468-487, September.
    8. Michael J Weir & Catherine M Ashcraft & Natallia Leuchanka Diessner & Bridie McGreavy & Emily Vogler & Todd Guilfoos, 2020. "Language effects on bargaining," PLOS ONE, Public Library of Science, vol. 15(3), pages 1-20, March.
    9. Nong, Duy & Siriwardana, Mahinda, 2018. "Potential impacts of the Emissions Reduction Fund on the Australian economy," Energy Economics, Elsevier, vol. 74(C), pages 387-398.
    10. Glebe, Thilo W., 2011. "Tendering conservation contracts: Should information on environmental benefits be disclosed or concealed?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114625, European Association of Agricultural Economists.
    11. Ferraro, Paul J., 2008. "Asymmetric information and contract design for payments for environmental services," Ecological Economics, Elsevier, vol. 65(4), pages 810-821, May.
    12. Sauer, Johannes & Walsh, John, 2011. "ESS versus NVZ – The Cost-Effectiveness of Command-and-Control versus Agreement Based Policy Instruments," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108963, Agricultural Economics Society.
    13. Phillip Hone & Geoff Edwards & lain Fraser, 1999. "Agricultural Land Retirement and Biodiversity Policy," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 6(3), pages 211-224.
    14. Markus Groth, 2009. "The transferability and performance of payment-by-results biodiversity conservation procurement auctions: empirical evidence from northernmost Germany," Working Paper Series in Economics 119, University of Lüneburg, Institute of Economics.

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