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Imitation Perfection—A Simple Rule to Prevent Discrimination in Procurement

By Helene Mass, Nicolas Fugger, Vitali Gretschko, and Achim Wambach

American Economic Journal: Microeconomics, August 2020

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 perfec...

Pricing Network Effects: Competition

By Itay P. Fainmesser and Andrea Galeotti

American Economic Journal: Microeconomics, August 2020

We study the practice of influencer marketing in oligopoly markets and its effect on market efficiency. In our model, each consumer is influenced by choices of a subset of other consumers. Firms gather information on consumers' influence and price discrim...

Revealed Preference Analysis with Normal Goods: Application to Cost-of-Living Indices

By Laurens Cherchye, Thomas Demuynck, Bram De Rock, and Khushboo Surana

American Economic Journal: Microeconomics, August 2020

We present a revealed preference methodology for nonparametric demand analysis under the assumption of normal goods. Our methodology is flexible in that it allows for imposing normality on any subset of goods. We show the usefulness of our methodology for...