Valuing Goods Allocated via Dynamic Lottery

A-Tier
Journal: Journal of the Association of Environmental and Resource Economists
Year: 2020
Volume: 7
Issue: 4
Pages: 721 - 749

Authors (3)

Carson Reeling (not in RePEc) Valentin Verdier (not in RePEc) Frank Lupi (Michigan State University)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Resource managers often use “dynamic lotteries” to allocate access to recreational opportunities. Under these lotteries, applicants’ probability of winning access increases with their seniority, earned by being unsuccessful in past drawings. Winning access means forfeiting one’s seniority. Hence, applicants under a dynamic lottery face intertemporal trade-offs in making their application choices and have incentives to be forward-looking. We use a structural dynamic discrete choice model to estimate willingness to pay (WTP) for black bear hunting opportunities in Michigan, permits for which are allocated via dynamic lottery. We show that forward-looking behavior has important implications for welfare estimation. We also extend prior work by deriving a theoretically consistent measure of applicants’ marginal WTP for quality characteristics of lottery-rationed goods.

Technical Details

RePEc Handle
repec:ucp:jaerec:doi:10.1086/709142
Journal Field
Environment
Author Count
3
Added to Database
2026-01-25