Figure 1.
The graph plots the proportion of winning bids on the vertical axis and bid price ratio on the horizontal axis. The data show that when the bid price ratio is between 0.87 and 0.89, the proportion of winning bids is high, reaching values close to one. As the bid price ratio increases beyond 0.9, the proportion of winning bids begins to drop sharply, reaching near zero after 0.93 and remaining low up to 1.0. The curve indicates a strong inverse relationship between bid price ratio and the likelihood of winning bids, suggesting that lower bid prices relative to the benchmark are more successful.Relation between the bid price ratio and the proportion of winning bids
Note(s): The bidding result data pertain to outsourcing contracts for consulting services and others in Ehime Prefecture from June 2014 to March 2022. The horizontal axis omits bid price ratios of 0.86 or lower due to the small number of observations. The total number of observations used is 74,288
Source: Author’s own work, using official bid data disclosed by Ehime Prefecture