Figure A1.
Two graphs display the proportion of winning bids in relation to bid price ratios for competitive markets, examining the discontinuity at the 0.95 threshold from the perspectives of general and designated bidding.The figure consists of two panels that examine how bid price ratios influence the proportion of winning bids in competitive markets. Panel a, General competitive bidding, shows a smooth curve with scattered data points and an estimated discontinuity of negative 0.0006 with a z-value of negative 0.005, indicating minimal change at the cutoff ratio of approximately 0.95. Panel b, Designated bidding, presents an estimated discontinuity of negative 0.729 with a z-value of negative 2.823, showing a distinct decline beyond the same cutoff. Both panels display sample averages within bins and a fourth-order polynomial fit, with the x-axis representing bid price ratio values and the y-axis showing the proportion of winning bids.

In competitive markets: verification of the discontinuity at 0.95 rule

Note(s): Left panel: general competitive bidding. Right panel: designated bidding. The interpretation of the figure is the same as in Figure 4 

Source: Author’s own work

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