Tag Archives: Facilities

O’Sullivan, A. (1993). Voluntary auctions for noxious facilities: incentives to participate and the efficiency of siting decisions.

This paper explores the efficiency properties of a voluntary auction under which the city submitting the low bid hosts the region′s noxious facility and receives the high bid as compensation. In the Nash equilibrium of the auction game, the auction mechanism is individually rational (participation is rational for all values of the local environmental costs …

Continue reading “O’Sullivan, A. (1993). Voluntary auctions for noxious facilities: incentives to participate and the efficiency of siting decisions.”