Auctions have been around for many years now, and there are quite a few different types of them. What are some of the different types of auctions that you might see? Here’s a few of the more popular types that you’ll run across:
English Auction—this type of auction is arguably the most common form of auction that are used today. People attending this type of auction bid openly against one another, and every new bid is required to be higher than the previous bid (this type of auction is also known as an open ascending price auction). The English auction is commonly used for selling goods (most prominently antiques, art, real estate, etc.).
Dutch Auction—with this type of auction, the auctioneer begins with a high asking price for some quantity of items that are the same. The price is lowered until a bidder is willing to accept the auctioneer’s price for some quantity of the goods in the lot (it doesn’t have to be all the items) or until the seller’s reserve price is met. This type of auction has also been used for perishable items like fish and tobacco.
Sealed first-price auction—with this type of auction, all of the bidders that are participating will submit sealed bids at the same time. This is so that no bidder knows the bid of anyone that’s there. The bidder that submits the highest price will win the auction.
This is only some of the types of auctions that you will find. What are some of the other types that you have seen?