Agglomeration bonus in small and large local networks: A laboratory examination of spatial coordination

Simanti Banerjee (), Anthony M. Kwasnica and James Shortle

Ecological Economics, 2012, vol. 84, issue C, 142-152

Abstract: The Agglomeration Bonus (AB) is a subsidy mechanism intended to induce adjacent landowners to coordinate environmental conservation activities. This paper explores the effects of landowner group size on spatial coordination under the AB in laboratory experiments where players are located on circular local networks. The experiments indicate a significant difference in patterns of coordination between groups. Additionally, global coordination on a single strategy is obtained in half of the groups and in the remaining half, both strategies exist giving rise to localized areas of coordinated land uses on the network.

Keywords: Agglomeration Bonus; Coordination failure; Local networks; Experiments (search for similar items in EconPapers)
JEL-codes: C72 C73 C91 C92 Q24 Q57 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (44)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:84:y:2012:i:c:p:142-152

DOI: 10.1016/j.ecolecon.2012.09.005

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