Affirmative Action and Dual Sourcing: Towards Supplier Diversity before the Time of Cholera

with J Alcalde

The most recent version is here: SSRN Working Paper No. 3572009 (July 2021).

The current COVID-19 pandemic has highlighted the need to rely on a diverse pool of suppliers, besides achieving cost effectiveness. We propose complementing a share auction for dual sourcing with affirmative action to create an endogenous set-aside for a high-cost supplier. Continue reading