We propose a new procurement procedure which allocates shares of the total amount to be procured depending on the bids of suppliers. Among the properties of the mechanism are:(i) Bidders have an incentive to participate in the procurement procedure, as equilibrium payoffs are strictly...

We study the effects of affirmative action through endogenous set-asides. We propose a share auction for dual sourcing in which more intensive affirmative action strengthens the favoured provider. This has the potential to level the playing field and induce more competitive procurement overall....

The current COVID-19 pandemic has highlighted the need to rely on a diverse pool of suppliers, besides achieving cost effectiveness. Common wisdom, however, holds that these two aims are in conflict. We propose complementing a share auction for dual sourcing with affirmative action to create an...