Category: Types of auction

Calcutta auction
A Calcutta auction is an open auction held in conjunction with a golf tournament, horse race or similar contest with multiple entrants. It is popular in backgammon, the Melbourne Cup, and college bask
Proxy bid
Proxy bidding is an implementation of an English second-price auction used on eBay, in which the winning bidder pays the price of the second-highest bid plus a defined increment. It differs from a Vic
Generalized second-price auction
The generalized second-price auction (GSP) is a non-truthful auction mechanism for multiple items. Each bidder places a bid. The highest bidder gets the first slot, the second-highest, the second slot
Sequential auction
A sequential auction is an auction in which several items are sold, one after the other, to the same group of potential buyers. In a sequential first-price auction (SAFP), each individual item is sold
Common value auction
In common value auctions the value of the item for sale is identical amongst bidders, but bidders have different information about the item's value. This stands in contrast to a private value auction
Candle auction
A candle auction, or auction by the candle, is a variation on the typical English auction that became popular in the 17th and 18th centuries. In a candle auction, the end of the auction is signaled by
Bidding fee auction
A bidding fee auction, also called a penny auction, is a type of all-pay auction in which all participants must pay a non-refundable fee to place each small incremental bid. The auction is extended ea
Double auction
A double auction is a process of buying and selling goods with multiple sellers and multiple buyers. Potential buyers submit their bids and potential sellers submit their ask prices to the market inst
Generalized first-price auction
The generalized first-price auction (GFP) is a non-truthful auction mechanism for (a.k.a. position auctions). In sponsored search n bidders compete for the assignment of k slots. Each slot has an asso
Smart market
A smart market is a periodic auction which is cleared by the operations research technique of mathematical optimization, such as linear programming. The smart market is operated by a market manager. T
Supply-chain auction
A supply-chain auction is an auction for coordinating trade among various suppliers and consumers in a supply chain. It is a generalization of a double auction. In a double auction, each deal involves
Deferred-acceptance auction
A deferred-acceptance auction (DAA) is an auction in which the allocation is chosen by repeatedly rejecting the least attractive bids. It is a truthful mechanism with strategic properties that make it
French auction
A French auction (Offre à Prix Minimal, formerly Mise en Vente) is a multiple-price auction used for pricing initial public offerings. In this offering, the firm announces a minimum (reserve) price. I
Vickrey auction
A Vickrey auction or sealed-bid second-price auction (SBSPA) is a type of sealed-bid auction. Bidders submit written bids without knowing the bid of the other people in the auction. The highest bidder
Combinatorial auction
A combinatorial auction is a type of smart market in which participants can place bids on combinations of discrete heterogeneous items, or “packages”, rather than individual items or continuous quanti
Reverse auction
A reverse auction (also known as buyer-determined auction or procurement auction) is a type of auction in which the traditional roles of buyer and seller are reversed. Thus, there is one buyer and man
OpenIPO is a modified Dutch auction which allows shares of an initial public offering (IPO) to be allocated impartially. It is a variation on the traditional way that shares are sold during the IPO pr
Japanese auction
A Japanese auction (also called ascending clock auction) is a dynamic auction format. It proceeds in the following way. * An initial price is displayed. This is usually a low price - it may be either
No-reserve auction
A no-reserve auction (NR), also known as an absolute auction, is an auction in which the item for sale will be sold regardless of price. From the seller's perspective, advertising an auction as having
Unique bid auction
A unique bid auction is a type of strategy game related to traditional auctions where the winner is usually the individual with the lowest unique bid, although less commonly the auction rules may spec
Vickrey–Clarke–Groves auction
A Vickrey–Clarke–Groves (VCG) auction is a type of sealed-bid auction of multiple items. Bidders submit bids that report their valuations for the items, without knowing the bids of the other bidders.
Brazilian auction
A Brazilian auction is a certain set of rules for a reverse auction. The buyer communicates the price she or he is willing to pay for the whole lot in advance. Then, the sellers bid on how many identi
First-price sealed-bid auction
A first-price sealed-bid auction (FPSBA) is a common type of auction. It is also known as blind auction. In this type of auction, all bidders simultaneously submit sealed bids so that no bidder knows
All-pay auction
In economics and game theory, an all-pay auction is an auction in which every bidder must pay regardless of whether they win the prize, which is awarded to the highest bidder as in a conventional auct
Present value of revenues auction
A present value of revenues auction, sometimes called a least present value of revenues auction, is a method of awarding contracts in which the bids are for the total present value of cash flows from
Single-price auction
Single-price auctions are a pricing method in securities auctions that give all purchasers of an issue the same purchase price. They can be perceived as modified Dutch auctions. This method has been u
Dollar auction
The dollar auction is a non-zero sum sequential game explored by economist Martin Shubik to illustrate a paradox brought about by traditional rational choice theory in which players are compelled to m
Multiunit auction
A multiunit auction is an auction in which several homogeneous items are sold. The units can be sold each at the same price (a uniform price auction) or at different prices (a discriminatory price auc
Walrasian auction
A Walrasian auction, introduced by Léon Walras, is a type of simultaneous auction where each agent calculates its demand for the good at every possible price and submits this to an auctioneer. The pri
Buyer's premium
In auctions, the buyer's premium is a charge in addition to the hammer price (i.e. the winning bid announced) of an auction item, or lot. The winning bidder is required to pay both the hammer price an
Multi-attribute auction
A multi-attribute auction is a type of auction in which the bids have multiple parts. Multi-attribute auctions allow agents to sell and purchase goods and services, taking into account more attributes
English auction
An English auction is an open-outcry ascending dynamic auction. It proceeds as follows. * The auctioneer opens the auction by announcing a suggested opening bid, a starting price or reserve for the i
Forward auction
Forward auction are auctions, which can be used by sellers to sell their items to many potential buyers. Sellers and buyers can be individuals, organizations etc. Items are commonly placed at an onlin
Dutch auction
A Dutch auction is one of several similar types of auctions for buying or selling goods. Most commonly, it means an auction in which the auctioneer begins with a high asking price in the case of selli