Appendix: An optimal incentives contract can induce the ...

[rosent76]

Appendix: An optimal incentives contract can induce the revelation of true costs in a partnership by
 a. imposing penalties when costs are overstated
  b. offering bonus payments when costs are verified
  c. renewing the reliance relationship
  d. linking revealed cost to the partner's foregone expected profits
  e. enlisting third-party enforcement

Question 2

The optimal bidding strategy for an oral auction is
 a. To shade your bid below your true value and drop out well before it is reached
  b. To shade your bid below your true value and drop out just when the shaded amount is reached
  c. To bid drop out when the bidding exceeds your true value
  d. To size up your competition to determine how much to shade your bid

[Liamb2179]

Answer to Question 1

d

Answer to Question 2

c

[rosent76]

Excellent

[amandalm]

Gracias!