Auction theory

Introduction

Introduction

English auctions

English auctions

In an English auction bidders make ascending bids on a product, each bid needing to be higher than the last.

These are open auctions. Each bid is visible to all participants.

The price paid is the final bid.

English auctions

In an English auction bidders make ascending bids on a product, each bid needing to be higher than the last.

These are open auctions. Each bid is visible to all participants.

The price paid is the final bid.

Dutch auctions

Dutch auctions

In a Dutch auction the auctioneer decreases the price until a single bid is received.

These are open auctions. Each bid is visible to all participants.

The price paid is the bid.

Blind auctions

Blind auctions

Blind auctions are sealed-bid auctions. Participants cannot view other bids.

The price paid is the highest bid.

Vickrey auctions

Vickrey auctions

Vickrey are sealed-bid auctions. Participants cannot view other bids.

The price paid is the second-highest bid.