Collusion-proof mechanisms for multi-unit procurement

B-Tier
Journal: Games and Economic Behavior
Year: 2023
Volume: 138
Issue: C
Pages: 281-298

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

A principal wants to procure multiple homogeneous units from finitely many agents. Each agent has an increasing and convex cost function, whose exact shape is unknown to the principal. Utility is quasilinear in money. We study which mechanisms are strategy-proof and robust to collusion, both when the agents can exchange money and physical units (reallocation-proofness) and when they cannot (group strategy-proofness). To achieve reallocation-proofness, the principal must offer the agents a fixed price per unit. While group-strategy-proof mechanisms can be more complex, they are inefficient and run the risk of procuring no units at all. We characterize the set of group-strategy-proof and anonymous mechanisms with a uniform price. A standout feature is that the number of potential prices is bounded above by the number of agents.

Technical Details

RePEc Handle
repec:eee:gamebe:v:138:y:2023:i:c:p:281-298
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25