19-4 Job Auction? When China reformed state-owned enterprises, it tried a new approach to choosing managers: it put managerial jobs up for auction. The bids for the jobs consisted of promises of future profitcreams that the managers would generate and chen deliver to the state. In cases where the incumbent manager was the winning bidder, firm productivity tended to increase dramat- ically. When outside bidders won, there was little productivity improvement. If incumbent managers were not generally more qualified, how can you explain this result