question archive If TeleCo were to enter into a strategic alliance with a partner that promised it could deliver a high quality wireless infrastructure when in fact the potential partner had neither the skills nor abilities to provide this infrastructure
If TeleCo were to enter into a strategic alliance with a partner that promised it could deliver a high quality wireless infrastructure when in fact the potential partner had neither the skills nor abilities to provide this infrastructure
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If TeleCo were to enter into a strategic alliance with a partner that promised it could deliver a high quality wireless infrastructure when in fact the potential partner had neither the skills nor abilities to provide this infrastructure. TeleCo could be said to be impacted by
A) moral hazard.
B) adverse selection.
C) holdup.
D) tacit collusion.
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D) tacit collusion
In the situation depicted above, Teleco already made a statement that any other competitor would not provide the concerned infrastructure. Hence, the firm is clearly stating that no competitor would retaliate for the actions undertaken by the Teleco.
