Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
This article investigates multi-unit uniform-price auctions with allowance reserves, where a fixed quantity of units is supplemented by an additional supply reserve. The reserve automatically releases units if a sufficiently high price is triggered. This mechanism is commonly used in pollution permit auctions. The main justification for implementing an allowance reserve is to assist in cost containment. We show—paradoxically—that incorporating an allowance reserve into a permit auction may increase the clearing price. This has implications for all major cap-and-trade markets, including the US Regional Greenhouse Gas Initiative.