Answer:
The type of scenario which is explained in which their is competition based pricing is called COMPETITIVE BID.
Step-by-step explanation:
Here, it has been given that E-bay is a popular website. From this particular website people can buy and choose a variety of objects such as games, toys, face potato chips, game tickets, cars and many other interesting things.
The people on this site enter their amounts which they are willing to pay for that particular object on that site. By seeing this amount entered another one and other more people will enter some higher amounts for that particular object on the site.
Similarly some more other people will do same and choose more higher amount to be entered that they are willing to pay for that item or object.
SO, the type of scenario which is explained in which their is competition based pricing is called COMPETITIVE BID.
COMPETITIVE BID: This is referred to a process which is carried out by companies or individuals for the bid issuing that the companies or individual put together for a particular project, item or an object to get its best proposal.
It is also been passed by law and made mandatory for all the government agencies to follow it and does issual of the bid.
There are six processes in Bidding :
- First step goes in allocating the bigger opportunities.
- Second step is for determination of the process of bidding.
- Pre participation in bidding issues.
- submission of the bid
- Evaluating the bidding process and participate in the process
- contract winning.