Landowners’ Payoff and Optimal Amount of Control: Market Ecosystem Service Preferences Case
| DM | CP | Social Cost of Externality | ||||
|---|---|---|---|---|---|---|
| Payoffs | Control | Payoff | Control | DM with Respect to CP | ||
| $/Acre | Treatments | $/2 Acres | Treatments | $/2 Acres | % | |
| First mover | 12,491 (2,885) | 1,203 (12) | 15,467 (3,346) | 944 (33) | n/a | n/a |
| Second mover | 15,318 (3,114) | 962 (13) | 15,847 (3,318) | 744 (28) | n/a | n/a |
| Total | 27,808 (4,245) | 2,165 (18) | 31,314 (4,712) | 1,688 (43) | −3,506*** | −11 |
Note: Standard deviations are in parentheses. CP = central planner; DM = decentralized management.
↵*** p < 0.01.