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Auctioning Conservation Contracts in Indonesia - Participant Learning in Multiple Trial Rounds

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  • B Kelsey Jack

Abstract

This paper examines bid adjustments across multiple trial rounds to identify learning by participants in a procurement auction for conservation contracts in Indonesia. Outcomes from previous rounds show an effect on adjustment in subsequent rounds, which is significantly different from predictions under simulated random bidding. This pattern indicates systematic incorporation of information into bid formation, consistent with learning. Individual bidding variability decreases with repetition, consistent with the discovery of a common value component to the auctioned conservation contract. Implications for future implementation of conservation auctions in developing countries and directions for future research are discussed.

Suggested Citation

  • B Kelsey Jack, 2009. "Auctioning Conservation Contracts in Indonesia - Participant Learning in Multiple Trial Rounds," CID Working Papers 35, Center for International Development at Harvard University.
  • Handle: RePEc:cid:wpfacu:35
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    File URL: https://www.hks.harvard.edu/sites/default/files/centers/cid/files/publications/fellow_graduate_student_working_papers/035-2.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Skidmore, Samuel & Santos, Paulo & Leimona, Beria, 2014. "Targeting REDD+: An Empirical Analysis of Carbon Sequestration in Indonesia," World Development, Elsevier, vol. 64(C), pages 781-790.
    2. Ajayi, Oluyede C. & Jack, B. Kelsey & Leimona, Beria, 2012. "Auction Design for the Private Provision of Public Goods in Developing Countries: Lessons from Payments for Environmental Services in Malawi and Indonesia," World Development, Elsevier, vol. 40(6), pages 1213-1223.

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    More about this item

    Keywords

    conservation contract; auction; learning; developing country; non-market goods;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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