Table 2: Competitive bidding equilibrium solutions (CBEs) in the basic model.
CBEsOrder relationships of the marginal service feesEquilibria of basic modelBidding priceLiquidationMoral hazard
1D××
2C×○
3B○×
4B○×
Note. The ○ sign in the liquidation column means that the project continues, whereas the × sign means that the project is liquidated. The ○ sign in the moral hazard column means that a moral hazard does not occur, whereas the × sign means that a moral hazard occurs.