Landowners’ Payoffs and Optimal Amount of Control: Nonmarket 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 | 841 (77) | 0 | 2,203 (82) | 783 (28) | n/a | n/a |
| Second mover | 1,591 (123) | 0 | 2,509 (64) | 682 (25) | n/a | n/a |
| Total | 2,432 (145) | 0 | 4,712 (104) | 1,465 (38) | −2,280*** | −48 |
Note: Standard deviations are in parentheses. CP = central planner; DM = decentralized management.
↵*** p < 0.01.