We explore the long run dynamic implications of subjecting an imperfectly competitive industry to market-based pollution regulation. We are particularly interested in understanding how the allocation of emissions permits in a cap-and-trade program can influence the evolution of a trade exposed...

In many multi-unit auctions, bidders' valuations for a particular good depend on whether or not they also win the auction for another good. In these environments, the auctioneer can allow bidders to reflect these complementarities through additional bidding mechanisms. This paper studies the...