In this mechanism, compliance agent

In this mechanism, compliance agents adopt an aggressive strategy toward speculators. This strat- egy significantly increases the seller’s revenue, compared to the more collusive clock auction. In the latter, on the con- trary, bidders accommodate speculators, letting them buy permits in the auction and buying their necessary permits on the secondary market. However, as opening the auction to speculators deteriorates efficiency, the regulator faces a trade-off between these two objectives