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Suppose That a Supermarket Auctions Contracts for Manufacturers to Provide

Question 50

Multiple Choice

Suppose that a supermarket auctions contracts for manufacturers to provide it with its own-labelled products. Which of the following strategies would prevent co-operation among rival firms that bid for the contracts?


A) Running an English auction
B) Reducing the number of firms that bid for the contracts
C) Making the auction a repeated game
D) Organizing blind auctions

Correct Answer:

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