Management Information System (MIS) Practice Exam

Which of the following options allows buyers to bid against each other in a competitive setting?

1. E-tendering

2. E-auctions

3. E-integration

4. E-filing

The correct answer is: E-auctions

Bidding in a competitive setting typically involves dynamic pricing, where participants can increase their offers in real-time based on the bids submitted by others. E-auctions are designed specifically for this purpose, allowing multiple buyers to compete against one another by placing bids on items or services. This competitive environment encourages buyers to offer higher prices to win the auction, which can lead to a market-driven pricing mechanism. In contrast, e-tendering usually involves buyers submitting proposals for goods or services, but does not allow for live competitive bidding in the same instant, making it less dynamic in terms of pricing competition. E-integration pertains to the seamless interconnection of different information systems, facilitating data exchange and operational processes rather than a bidding scenario. E-filing is focused on the electronic submission of documents, typically for regulatory or administrative purposes, and does not involve any competitive bidding among buyers. Therefore, e-auctions are the clear choice here as they provide the mechanism for buyers to bid against each other in a competitive, time-sensitive setting, leveraging the principles of auction theory and competitive pricing.