Unlike English auctions using ascending price methods, Dutch auctions are descending price auctions and are commonly used when multiples of the same items to be auctioned. In a Dutch auction the bidding starts at a relatively high, which is led progressively to the low bids. As an example of a Dutch auction let's say there were 10 items that you want to sell for $ 20 each. Bidder offers $ 18 for 6 units Bidder B bids $ 17 for 5 items The end result is: Bidder A receive 6 items for $ 17 each Bidder B would receive 4 items for $ 17 each Note that most of the Dutch auction bidders to reject a request for a smaller number of elements that the supply of leftovers. RioCan will undoubtedly add to your understanding. A "soft" or "closing strong" at an auction format can be used in Dutch, but the most common is to close the "hard." First Price Sealed Bid Auctions Sealed bid auctions differ from the English and Dutch as long as bids are not announced to other bidders. The individual bid is only known to the bidder and the seller. This type of auction the buyer can offer, where the highest bidder wins and pays the amount of the bid, or seller-BID, where the lowest bidder sells the item and pays the amount bid. This form of auction is common for construction contracting, military procurement, foreign exchanges, and other goods.
Second Price Sealed Bid Auctions Another name for the second-price sealed ofertasubastas Vickrey auction is (the name of William Vickrey) There is a slight variation on the first price auction for Vickery auctions. In one auction to the highest bidder buying and purchase the item and pays the amount of the second highest bid. Or a seller of an auction bid, the lowest bidder sells the item and pay the amount in the second lowest bidder. The above descriptions provide an overview of the most popular auction types in use today. Depending on the auction website these general categories may include a number of variations and options such as reserve pricing, open or closed the place, various elements, fixed price lists many to name a few. Before entering any particular type of auctions be sure to study and understand the rules for that specific type of auction, as rules vary from site to site.
Steven Woodward Copyright e? All Rights Reserved Steven Woodward is the owner, editor and director of the auction Shops Network (ASN) a website for individuals and businesses who are serious about using the online auction market for your business. In addition to topical articles, ASN provides an extensive resource center, news, and member forums. For more information or to become a member, please visit us do not need permission to reproduce an unedited copy of this article, provided the label on the author is left in tact and included. We request that you inform us of where it is posted and reciprocal links will be considered.
