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. Winner’s curse). Second, bidders may practice underbidding consciously for strategic reasons, e.g. to enter the market.