If You Are Planning a Common Value Auction and Suspect

question 93

Multiple Choice

If you are planning a common value auction and suspect that collusion may occur,which of the following should you NOT do?

• A)Hold one large auction instead of several small auctions.
• B)Hold a sealed bid auction instead of an open auction.
• C)Provide additional information about the products to the potential bidders.
• D)Publish a list of the people that you expect to attend the auction.

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Definitions:

Selective Perception

The process where individuals selectively interpret what they see based on their interests, background, experience, and attitudes.

Perceptual Bias

is the tendency for perception to be affected by recurring thoughts, beliefs, or attitudes, leading to distorted interpretations of information.

Attribution Bias

A cognitive bias that affects the way people deduce the causes of their own and others' behaviors, often attributing them incorrectly.

Employee Withdrawal Behaviors

Actions by employees to disengage from work, which can include absenteeism, tardiness, or quitting, often due to dissatisfaction or disinterest.