High Uncertainty in Competitive Markets

question 39

Multiple Choice

High uncertainty in competitive markets

• A) increases the number of alliances because uncertainty leads to synergy.
• B) erodes alliances because uncertainty motivates opportunistic behaviors by alliance partners.
• C) encourages firms to form alliances to share risks.
• D) makes alliances among firms less attractive because the markets' profits are meager.

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Definitions:

Unconditioned Stimulus (US)

A stimulus that naturally triggers a response without the need for prior learning.

Conditioned Stimulus (CS)

In classical conditioning, a previously neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, evokes a conditioned response.

Morphine

A potent opiate analgesic drug used to relieve severe pain.

Classical Conditioning

The act of learning by making connections between an environmental and a naturally happening stimulus.