Adverse Selection in a Strategic Alliance Is Likely Only When

question 40

Multiple Choice

Adverse selection in a strategic alliance is likely only when

• A) it is difficult or costly to observe the resources or capabilities that a partner brings to an alliance.
• B) a potential partner can easily see the resources and capabilities that a firm is bringing to an alliance.
• C) it is difficult or costly to know how competitors will react to the strategic alliance.
• D) there are significant transaction-specific assets devoted to the alliance.

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