The influence of contract length on the performance of sequential conservation auctions
研究了在序列保护拍卖中，延长合同期限如何影响投标人的最优出价、土地被纳入保护计划的概率以及拍卖的预算成本效益和经济效率。
Abstract The present article explores the extent to which the performance of a sequential conservation auction can be improved by changing the duration of conservation contracts. Optimal bidding in the context of a sequential conservation auction is modeled as a dynamic optimization problem and solved through backward induction. We show that a longer duration of conservation contracts increases not only the privately optimal bid of a risk‐neutral bidder but also the probability that a land plot is included in a conservation program. Whether a longer duration of conservation contracts increases or decreases the budgetary cost effectiveness and economic efficiency of a sequential auction depends on the scale of variation for the cutoff bid.