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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?

Think about an ex that pertains to you. If there is expected goodwill would you be prepared to bid lower to get a contract? describe your reasons. In 300 words or more, please, provide your response to the above discussion problem. Substantive responses use theory, research, and experience or exs to support ideas and further the class knowledge on the discussion topic.

Microeconomics, Economics

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