Endogenous entry of landowners into conservation markets over time

Abstract

This research examines the effectiveness of different conservation auction formats in an endogenous entry setting. Induced value auction lab experiments are used to test behavior in both dynamic and static auction structures. The results support prior results on the importance of cost effectiveness in purchasing decisions, and further show that past results may have been understated by ignoring dynamic elements like strategic entry and underbidding that arise in a dynamic endogenous entry environment.