Figure A4.
This figure presents two panels showing the relationship between bid price ratios and winning bid proportions for tenders held before 2016. Panel a, General competitive bidding, shows a mild decline near the cutoff, with an estimated discontinuity of negative 0.017 and z-value of negative 0.179. Panel b, Designated bidding, exhibits a larger drop around 0.95, with an estimated discontinuity of negative 0.696 and z-value of negative 5.848. Both panels display scattered data points representing sample averages within bins and a fourth-order polynomial fit line. The y-axis represents the proportion of winning bids, and the x-axis displays bid price ratios ranging from 0.85 to 1.0, with the vertical reference line marking the observed discontinuity.Before FY2016: 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