Asked by Breonna Arbee on Sep 24, 2024
Verified
With which choice are you more likely to avoid Bid-rigging cartels?
A) Holding English auctions
B) Holding sealed-bid auctions
C) Holding oral auctions
D) All of the above
Bid-rigging
A form of fraud where competitors conspire to determine the winner of a bidding process, undermining fair competition.
English Auctions
A method of sale in which the price ascends and participants bid openly against each other, with the item being sold to the highest bidder.
Sealed-bid Auctions
Auctions in which all bidders simultaneously submit their bids in sealed envelopes, with no bidder knowing the bid of the others.
- Comprehend the processes and consequences of bid-rigging cartels, along with approaches to prevent them.
- Comprehend how the type of auction influences the results of the auction and the actions of bidders.
Verified Answer
AL
Aaliyah Leonardo2 days ago
Final Answer :
B
Explanation :
Holding sealed-bid auctions is the best choice for avoiding bid-rigging cartels as bidders are not aware of each other's bids and cannot coordinate to manipulate the auction. This reduces the likelihood of collusion and ensures fair competition among bidders. Holding English auctions and oral auctions allow bidders to observe each other's bids, which increases the risk of collusion and Bid-rigging cartels.
Learning Objectives
- Comprehend the processes and consequences of bid-rigging cartels, along with approaches to prevent them.
- Comprehend how the type of auction influences the results of the auction and the actions of bidders.