Goeree, Jacob K.; Holt, Charles A.; Palmer, Karen; … - In: Journal of the European Economic Association 8 (2010) 2-3, pp. 514-525
We experimentally study auctions versus grandfathering in the initial assignment of pollution permits that can be traded in a secondary spot market. Low and high emitters compete for permits in the auction, whereas permits are assigned for free under grandfathering. In theory, trading in the...