Bid rigging is the illegal practice of predetermining who will win a the contract to build a project. It's a form of collusion that allows contractors to extract higher prices than they might otherwise get in a truly competitive bidding environment.
If you've ever seen The Sopranos, bid rigging comes up a lot. In that case, it works like this: supposedly rival companies get together and decide who will submit the winning bid for a contract. Instead of competing to see who can present the lowest possible price, companies predetermine a price they are looking to make. One company (say, Tony Soprano's Barone Sanitation) then submits the predetermined winning bid amount. The other companies (like Johnny Sack's Cinelli Sanitation) submit higher bids, ensuring that the "low" bid wins the contract.
The companies might take turns securing contracts that way, assuring that prices stay high (basically acting as a monopolistic cabal). Or the other companies in the scheme might receive a payoff from the company winning the bid.
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Finance: What is a Bear Raid?8 Views
Finance allah shmoop what is a bear raid So this
is a bear raid and this is a bear raid
And you knew you were going there Well i think
there's fraud fraud i tell you Well i think their
product just doesn't mean anything anymore Well i think that
with all those risk they're just trade me in it
too high a multiple Isn't the government going to regulate
them I thought that was a union coming in there
What are these people doing Are they rationally commenting on
honest things they actually believe are elements of the stock
No not at all In fact all of them shorted
the stock it's sixty bucks a share making the bet
that the stock would go down only now courtesy of
the wall street genius journalists being manipulated at the new
socialist times the group is spreading lies trickery and deceit
about stock prices Manipulating the market hoping to profit from
all the negative sentiment they've poured out there into the
ether making already nervous investors very nervous And it was
easy to get the journalist cooperate because well they hate
rich people Right All right Well if they covered it
thirty five that is unwound They're short position which started
at sixty bucks a share Well they'd have made twenty
five dollars a share in profits and that's totally illegal
Incidentally so is the other kind of bear raid but 00:01:29.315 --> [endTime] that we're not going there today Oh my
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