In Industries Where There Is a High Degree of Competition

question 62

True/False

In industries where there is a high degree of competition among suppliers, reverse auctions can be an efficient way to conduct and manage the price bidding that would naturally occur in that market.

---

Definitions:

Bayes' Law

A theorem describing the probability of an event based on prior knowledge of conditions that might be related to the event.

P(A|B)

The probability of event A occurring, given that event B has already occurred.

P(B|A)P(A)

Represents the probability of event B given event A has occurred, multiplied by the probability of event A; used in the calculation of joint probabilities.

Bayes' Law

A theorem that describes the probability of an event, based on prior knowledge of conditions that might be related to the event.