AWWA ACE70681

This powerpoint presentation begins by presenting the problem statement: water allocation increasingly relevant. The All-in Auction is presented as a solution. Compared to autarky and bilateral trades, multilateral two-sided auctions clear faster and have greater efficiency. However, they may not maximize trades if either of the following is true: participation - some sellers do not enter the auction to trade; and, endowment - some sellers have WTA > p > WTP. The AiA solves these problems by: participation - all rights in the auction (weakened property rights); and, endowment - having everyone bid for units in a bid-only auction. Interesting pricing complications are presented, along with lab experiments and field work.