Under what conditions might a company prefer to negotiate rather than use competitive bidding to select a supplier

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Explanation:

Competitive bidding is when's public bid is issued and companies compete for that particular project. This is usually common with government agency as it gives room for fairness.

A negotiated bid is when negotiation takes place between the project and the contractor that they want.

The conditions that might a company prefer to negotiate rather than use competitive bidding to select a supplier when the variable that matters isn't only price. In this case, the company may negotiate with a supplier who's being paid premium.

Also, when there's a chance that specifications may be changed, this can lead to negotiated bidding being preferred. Furthermore, limitation of time can also make negotiated bidding being preferable.

Lastly, when a significant amount of money is involved, and new technologies are required, a company may prefer to negotiate.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.