Sometimes a bidder on a work contract may bid lower than, Ask an Expert

Economics

Sometimes, a bidder on a work contract may bid lower than what would maximize his/her profit from the contract and the reason for that is to create goodwill to increase expected future business from the buyer.

How would you value the goodwill that is obtained in this way?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M994097

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