3. The Delicate Balance
HP and Oracle’s move from the commitment phase to deterioration and dissolution is emblematic of frenemization. Why does this happen? My theory is that the relationship itself paradoxically facilitates its own death, so let’s consider this in greater detail. The challenge of maintaining a successful partnership over time is a delicate balance. Managers need to constantly assess and reevaluate the economic and noneconomic factors. Do managers really think in these terms? You bet.
In a study on the bidding strategies of differentiated bidders in an online procurement auction, Ernan Haruvy at the University of Texas at Dallas and I observed that bidders would adjust their price bids to account for the nonprice or noneconomic ...
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