Figure A2.
The figure features two panels representing the link between bid price ratios and the proportion of winning bids in monopoly markets. Panel a, General competitive bidding, shows a small positive discontinuity of 0.178 with a z-value of 0.210, with the curve peaking slightly near the bid ratio of 0.95. Panel b, Designated bidding, has an estimated discontinuity of negative 0.887, indicating a sharper drop beyond the same ratio. Both graphs plot sample averages within bins as data points and a fourth-order polynomial fit line, with the x-axis showing bid price ratios and the y-axis showing the proportion of winning bids. Vertical reference lines mark the cutoff points used for assessing discontinuities.In monopoly markets: verification of the discontinuity at 0.95
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