In the context of this project “underbidding” refers to a bid submitted by a bidder which is not cost-covering. There are two reasons for “underbidding”: First, bidders may have high uncertainties in estimating their costs and revenues and thus “underbidding” occurs unconsciously (i.e. Occurs when a winning bidder unintentionally underestimates ... More). Second, bidders may practice underbidding consciously for strategic reasons, e.g. to enter the market.