Imitation perfection - a simple rule to prevent discrimination in procurement

摘要

Procurement regulation aimed at curbing discrimination requires equal treatment of sellers. However, Deb and Pai (2016) show that such regulation poses virtually no restriction on the ability to discriminate. We propose a simple rule u2013 imitation perfection u2013 that restricts discrimination significantly. With homogeneous bidders, imitation perfection implies that all bidders earn the same surplus in every equilibrium conditional on their valuation.