In One of the Cases in the Textbook, Swainler's Technology

question 10

Multiple Choice

In one of the cases in the textbook, Swainler's Technology discovered that someone had stolen 1,400 hard drives from its computer warehouse. In order to collect on its theft insurance policy, the company had to show that the theft was an outside job. Before the insurance company paid Swainler's claim, it hired an independent investigator, who ultimately found that the hard drives were stolen and sold by Swainler's marketing manager, Frederic Boucher. How did the investigator identify Boucher's involvement?

• A) Boucher's ex-wife found out and contacted Swainler's board of directors.
• B) A former employee of Swainler's went to work for a competitor and told his manager about Boucher's involvement.
• C) The investigator found telephone calls made by Boucher to a warehouse where some of the stolen drives had been traced.
• D) Investigators found a large cash deposit in Boucher's bank account around the time that the drives went missing.

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Definitions:

Winner's Curse

A phenomenon in auctions, suggesting that the winning bidder tends to overpay due to incomplete information or overly optimistic value assessments.

Sealed-Bid Auction

A type of auction where all bidders simultaneously submit sealed bids to the auctioneer, and the highest bidder wins without knowing the bids of the others.

Private Values

A situation in auctions or market transactions where the value of an item is known only to the individual bidder or participant, not to the other bidders or the seller.

Vickrey Auction

An auction model where sealed bids are submitted, and although the item goes to the highest bidder, the price they pay is determined by the second-highest bid.