Information and Competition in U.S. Forest Service Timber Auctions

Preprint
Publisher Website
Google Scholar
    • preprint
      • Published in RePEc
Abstract
This paper analyzes the role of private information in U.S. Forest Service timber auctions. In these auctions, firms bid a per unit price for each timber species. Total bids are computed by multiplying these prices by Forest Service volume estimates, but payments depend on actual volumes harvested. We develop an equilibrium theory for these auctions. We then relate (ex post) data about volume to (ex ante) bids. We show that bidders have private information about volumes of species and use it as predicted by theory. Differences in bidder estimates appear to affect the allocation of tracts, but competition limits information rents. (This abstract was borrowed from another version of this item.)

This publication has 0 references indexed in Scilit: