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This paper derives and justifies a procedurally fair bidding mechanism and reviews experiments that apply the mechanism to public projects pro- vision. In the experiments, not all parties benefit from provision, and the projects' costs can be negative. The experimental results indicate that the...
Persistent link: https://www.econbiz.de/10010884460
We introduce a procedurally fair rule to study a situation where people disagree about the value of three alternatives in the way captured by the voting paradox. The rule allows people to select a final collective ranking by submitting a bid vector with six components (the six possible rankings...
Persistent link: https://www.econbiz.de/10009492965
Based on an axiomatically derived provision rule allowing community members to endogenously determine which, if any, public project should be provided, we perform experiments where (i) not all parties benefit from provision, and (ii) the projects' "costs" can be negative. In the tradition of...
Persistent link: https://www.econbiz.de/10010555242
We compare, on the basis of a procedurally fair "provision point" mechanism, bids for a public project from which some gain and some lose with bids for a less efficient public project from which all gain. In the main treatment, participants independently decide which one, if any, of the public...
Persistent link: https://www.econbiz.de/10009249774
This paper experimentally examines a procedurally fair provision mech- anism allowing members of a small community to determine, via their bids, which of four alternative public projects to implement. Previous experi- ments with positive cost projects have demonstrated that the mechanism is...
Persistent link: https://www.econbiz.de/10010658715