Discrimination via Symmetric Auctions

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2017
Volume: 9
Issue: 1
Pages: 275-314

Authors (2)

Rahul Deb (University of Toronto) Mallesh M. Pai (not in RePEc)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Discrimination (for instance, along the lines of race or gender) is often prohibited in auctions. This is legally enforced by preventing the seller from explicitly biasing the rules in favor of bidders from certain groups (for example, by subsidizing their bids). In this paper, we study the efficacy of this policy in the context of a single object: independent private value setting with heterogeneous bidders. We show that restricting the seller to using an anonymous, sealed bid auction format (or, simply, a symmetric auction) imposes virtually no restriction on her ability to discriminate. Our results highlight that the discrepancy between the superficial impartiality of the auction rules and the resulting fairness of the outcome can be extreme.

Technical Details

RePEc Handle
repec:aea:aejmic:v:9:y:2017:i:1:p:275-314
Journal Field
General
Author Count
2
Added to Database
2026-01-25