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It increases their, already massive, overallocation of seats when compared to the other parties.
No one is served by an auction for 5% and in this way we would also tend to stimulate overallocation.
Overallocation of water licences and prolonged severe drought affecting snowfalls have undermined that security in the early 21st century.
Mr. Tice argued that uniform bullishness among analysts in 1999 and 2000 led to an overallocation of capital to risky companies with untested business models.
ARP had "early overallocation" during Phase I, and this allowed emission sources to "bank" their allowances for future years.
A general issue with cap and trade programs has been overallocation, whereby the cap is high enough that sources of emissions do not need to reduce their emissions.
The calls for an overarching program arose from the feeling that the uncoordinated actions of these parties lead to duplication of efforts, overallocation of resources to certain technical and geographical areas, and an untapped potential for joint initiatives and information exchange.
Overallocation is not the same as thin provisioning; resources can be overallocated / oversubscribed without using virtualization technology, for example overselling seats on a flight without allocating actual seats at time of sale, avoiding having each consumer having a claim on a specific seat number.