Asked by Bella Aldama on Sep 24, 2024
Verified
Bid-rigging is more likely when
A) auctions are for larger amounts
B) auctions are infrequent
C) auctions are oral
D) auctions are sealed-bid
Bid-rigging
An illegal agreement between parties to conspire and fix the bidding process, often in procurement auctions.
Sealed-bid
A bidding process where all the bids are kept confidential until a designated opening time, preventing bidders from seeing competitors' bids.
Auctions
A public sale process where goods or services are sold to the highest bidder.
- Understand the principles and implications of bid-rigging cartels, including actions to avoid them.
Verified Answer
CW
Caden White1 day ago
Final Answer :
D
Explanation :
Bid-rigging is more likely to occur in sealed-bid auctions where bidders cannot see each other's offers and cannot adjust their bids accordingly. In oral auctions or auctions for larger amounts, there is more opportunity for bidders to openly compete and adjust their offers. Infrequent auctions also do not necessarily increase the likelihood of bid-rigging.
Learning Objectives
- Understand the principles and implications of bid-rigging cartels, including actions to avoid them.