Asked by Kiersten Matthews on Sep 24, 2024
Verified
With which choice are you more likely to avoid Bid-rigging cartels?
A) Winning bids are not identified
B) Winning bidders are not identified
C) Cheaters do not fear punishment from other cartel members
D) All of the above
Bid-rigging
A form of fraud where competing parties conspire to determine the winner of a bidding process.
Cartels
An agreement among competing firms to control prices or exclude entry of a new competitor in a market.
Winning Bidders
The individuals or entities that offer the highest bid in an auction and are subsequently awarded the item or contract.
- Understand the mechanisms and implications of bid-rigging cartels and strategies to avoid them.
Verified Answer
YJ
Yuxin Jiang3 days ago
Final Answer :
D
Explanation :
Bid-rigging cartels are less likely to form or be effective when winning bids and bidders are not identified, and when cheaters fear punishment from other cartel members. These conditions disrupt the coordination and enforcement mechanisms that cartels rely on.
Learning Objectives
- Understand the mechanisms and implications of bid-rigging cartels and strategies to avoid them.