Jack owns a shoe store in a mall. A few months later, another shoe store opens in the mall. A month later, Jack notices that his sales figures have dropped considerably. He conducts an investigation and determines that the other store has been selling his shoes at unreasonably low prices. This conduct is called bid- rigging.

Question

Quizplus · Accepted Answer

Bid-rigging is when multiple parties collude to manipulate the outcome of a bidding process. The situation described in the scenario is actually an example of predatory pricing or undercutting, where a competitor intentionally sells products at lower prices to drive out competition.

Jack Owns a Shoe Store in a Mall