Imitation Perfection—A Simple Rule to Prevent Discrimination in Procurement

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2020
Volume: 12
Issue: 3
Pages: 189-245

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

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

Abstract

Procurement regulation aimed at curbing discrimination requires equal treatment of sellers. However, Deb and Pai (2017) show that such regulation imposes virtually no restrictions on the ability to discriminate. We propose a simple rule—imitation perfection—that restricts discrimination significantly. It ensures that in every equilibrium, bidders with the same valuation distribution and the same valuation earn the same expected utility. If all bidders are homogeneous, revenue and social surplus optimal auctions consistent with imitation perfection exist. For heterogeneous bidders, however, it is incompatible with revenue and social surplus optimization. Thus, a trade-off between non-discrimination and optimality exists.

Technical Details

RePEc Handle
repec:aea:aejmic:v:12:y:2020:i:3:p:189-245
Journal Field
General
Author Count
4
Added to Database
2026-01-25