All of the following are tools and mechanisms firms can use to reduce the threat of cheating in strategic alliances except

Question

Quizplus · Accepted Answer

Tacit collusion refers to a form of cooperation between firms without any formal agreement, and can increase the threat of cheating. Therefore, it is not a tool or mechanism that firms can use to reduce the threat of cheating in strategic alliances, making it the correct answer. Contracts, equity investments, and joint ventures are all ways in which firms can establish rules and guidelines for their partnership, allocate risks and rewards, and build trust to prevent cheating.

All of the Following Are Tools and Mechanisms Firms Can