underbid

from WordNet (r) 3.0 (2006)

underbid
    v 1: bid (a hand of cards) at less than the strength of the hand
         warrants
    2: bid lower than a competing bidder [ant: {outbid}]
    3: bid too low [ant: {overbid}]

from The Collaborative International Dictionary of English v.0.48

Underbid \Un`der*bid"\, v. t.
   To bid less than, as when a contract or service is offered to
   the lowest bidder; to offer to contract, sell, or do for a
   lower price than.
   [1913 Webster]

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