Pub. date: 2007 | Online Pub. Date: September 25, 2007 | DOI: 10.4135/9781412952637 | Print ISBN: 9780761923879 | Online ISBN: 9781412952637| Publisher:Sage Publications, Inc.About this encyclopedia
Richard E. Wagner
There are two basic forms of auction. Bidders compete for a good, service, or right in public against one other. One form is the English, or ascending-bid, auction. Here, the bidding starts at a low price, with the auctioneer continually raising the price until only one bidder remains. The other form of public auction is the Dutch, or descending-bid, auction. Here, the auctioneer starts with a high price, and continually announces lower prices until someone accepts the offer. There are also sealed-bid auctions, in which each participant enters a bid in private, with the auctioneer then opening the bids and selecting the winning bid. In one ...