Revolutionizing Environmental Protection: Combining Auctions to Fund Polluters' Projects
The article discusses how combinatorial auctions can be used to allocate financial support for environmental protection. The researchers conducted economic lab experiments to test this model on providing subsidies to polluters. In these auctions, bidders can bid on combinations of items, allowing them to express their preferences more fully. The experiment compared individual investments by polluters to creating coalitions for common projects. The results showed that combinatorial auctions can be an effective way to allocate financial support in environmental protection, especially when dealing with complementary items.