Bidders Beware: More Competition Leads to Less Aggressive Bidding in Concessions.
The study looked at how the number of bidders in auctions for toll road projects affects bidding behavior. They found that bidders tend to bid less aggressively when there are more competitors. This effect is stronger when there is more uncertainty about the project's value. Additionally, the likelihood of renegotiation can impact how much the winner's curse affects bidding behavior.