Lot split ratios: ten lots read 1.6 bidders per lot if they compete and 0.5 if they share
Type the tender's volume, each bidder's capacity and the number of lots. Five bidders on ten lots of 10 read 1.6 per lot competing and 0.5 sharing; five lots read 1.4 and 0.8. More lots raised one ratio and lowered the other. No split is recommended.
- Lot size10
- Bidders able to bid5 biddersA · B · C · D · E
- Bidding capacity in lots16 lots
- Optimistic ratio1.60
- Pessimistic ratio0.50
Givens
Three proposed splits
The lots are equal; volume and capacities use one unit.
- Tender volume
- 100
From 1 to 1,000,000 in the unit you use.
Each capacity is your estimate, from 0.01 to 1,000,000 in the tender's unit.
- Number of equal lots
- 10
A whole number from 1 to 20.
Two readings of the same split
This page shows what a mechanism does under stated rules and says nothing about any public procurement regulation. It scores your split and recommends none. Capacities are your estimates. The competing and sharing readings bracket what these ratios can say without forecasting a tender result; both matter.
Every lot count from 1 to 20
| Lot count | Lot size | Bidders able to bid | Bidding capacity in lots | Optimistic ratio | Pessimistic ratio |
|---|---|---|---|---|---|
| 1 | 100 | 0 | 0 | 0.00 | 0.00 |
| 2 | 50 | 1 | 1 | 0.50 | 0.50 |
| 3 | 33.33 | 2 | 2 | 0.67 | 0.67 |
| 4 | 25 | 3 | 4 | 1.00 | 0.75 |
| 5 | 20 | 4 | 7 | 1.40 | 0.80 |
| 6 | 16.67 | 4 | 7 | 1.17 | 0.67 |
| 7 | 14.29 | 5 | 10 | 1.43 | 0.71 |
| 8 | 12.5 | 5 | 11 | 1.38 | 0.63 |
| 9 | 11.11 | 5 | 12 | 1.33 | 0.56 |
| 10typed | 10 | 5 | 16 | 1.60 | 0.50 |
| 11 | 9.09 | 5 | 16 | 1.45 | 0.45 |
| 12 | 8.33 | 5 | 17 | 1.42 | 0.42 |
| 13 | 7.69 | 5 | 18 | 1.38 | 0.38 |
| 14 | 7.14 | 5 | 21 | 1.50 | 0.36 |
| 15 | 6.67 | 5 | 24 | 1.60 | 0.33 |
| 16 | 6.25 | 5 | 24 | 1.50 | 0.31 |
| 17 | 5.88 | 5 | 26 | 1.53 | 0.29 |
| 18 | 5.56 | 5 | 27 | 1.50 | 0.28 |
| 19 | 5.26 | 5 | 28 | 1.47 | 0.26 |
| 20 | 5 | 5 | 33 | 1.65 | 0.25 |
Here is the maths
Count bidders in two ways
Dividing the volume makes each lot smaller. Capacity determines who can bid and how many lots each bidder can cover. Competing credits that capacity; sharing counts each bidder once.
A worked example
Smaller lots admit one more bidder here, but that gain does not keep pace with the extra lots; the two readings move apart.
- The tender volume is 100 and the capacities, in row order, are 60, 40, 30, 20 and 15; at ten lots the size is:
- Divide each capacity by that size and retain whole lots:
- Every bidder can cover a lot, and their lot capacities add to:
- The two readings at ten lots are:
- At five lots the size is:
- The same capacities now cover:
- The last bidder can no longer cover a lot:
- The two readings at five lots are:
What each control can move
The lot count changes size, eligibility and both denominators; the volume changes size and which capacities reach a whole lot.
Each capacity can change how many lots its bidder covers and whether that bidder is counted at all; adding or removing a bidder can change both ratios.
Names identify the bidders read back in the finding; they carry no weight in either ratio.
The sweep holds volume and capacities fixed across every count from 1 to 20; its comparison takes the smallest count tied for the highest pessimistic ratio.
Capacities exactly at a whole lot boundary count that whole lot, allowing a tiny tolerance for computer arithmetic.
What this does not model
Unequal lots.
Bidders whose capacity is not measured in the tender's unit.
Package bids or collusion itself.
Source basis
Nicola Dimitri, Gustavo Piga and Giancarlo Spagnolo, Handbook of Procurement, supplies both ratios: capacity under strong competition and distinct bidders under suspected sharing, including the risk when lots match strong incumbents. Paul Klemperer, Auctions: Theory and Practice, describes spectrum sales in which matching licences to incumbents yielded little revenue and an extra differently sized licence attracted more bidders.
- Scale
- Linear axes; whole counts from 1 to 20; ratios to 2 decimals and lot sizes to at most 2
- Basis
- Equal lots, typed volume and estimated capacities in one unit
- Model version
- 1.0.0
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These ratios describe your stated split and capacities. They predict neither participation nor conduct, and recommend no lot count, bidder or award.
Related
- Bid cost: the eighth invitation is the first that loses moneyA bid costs 20,000 to prepare and 150,000 if it wins. One chance in seven still pays 1,429; one in eight loses 1,250. Seven holds and the eighth invitation is the first that loses money. The page names no number to invite.
- Supplier fixed cost: the lowest line prices give the highest billAward each line to its cheapest quote and the total is expected to be the lowest one available. Type two items, two suppliers and one cost that attaches to each supplier engaged rather than to a line, and it stops being true. At 50 a supplier the line by line award totals 310 while the whole basket at one supplier totals 270. The crossing sits at 10, below which the split award really is cheaper, and no supplier is ranked and no line is awarded here.