ABSTRACT
The reverse Dutch auction allows a market-based solution to a seemingly insoluble problem, at the same time protecting environmental standards. On 3 April 1991, the Public Broadcasting System telecast a three-hour special on risks. The last half-hour dealt with waste sites. It showed a confrontation in Braintree, Massachusetts, described as a working-class community. The chapter describes the reverse Dutch auction that differs from compensation schemes in that it allows the residents of an affected area to set their own levels of compensation. The airline reverse Dutch auction works well because each passenger decides for himself just how valuable his time is. One of the major advantages of the reverse Dutch auction is that it has a system of checks and balances, much like the American Constitution. This analogy is based on how scientific knowledge played a part in developing the ideas behind the Constitution.
