Types and examples of Auctions
The principal auction formats and real examples.
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Types of online auctions
Four primary auction formats on the Internet.
English Auction
- Single item, single seller
- Highest bidder wins
- Time limit + secret reserve price
- Seller-biased (buyers compete)
- Most common on eBay
Dutch Internet Auction
- Many identical items
- Lowest successful bid sets uniform price
- Bidders specify price + quantity
- Earliest bids win if oversubscribed
- Market-clearing price
Name Your Own Price
- Pioneered by Priceline
- Buyers state what they'll pay
- Priceline matches with inventory
- Second most-popular format
- Travel services focus
There are four primary online auction types. The English auction (most common on eBay) has a single item, a time limit, a secret reserve price, and the highest bidder wins; it is seller-biased. The Dutch Internet auction sells many identical units, with the lowest successful bid setting a uniform price for all winners. The Name Your Own Price auction, pioneered by Priceline, lets buyers state what they will pay. The penny (bidding-fee) auction charges bidders a non-refundable fee to bid.
Explanation: There are four primary online auction types. The English auction (most common on eBay) has a single item, a time limit, a secret reserve price, and the highest bidder wins; it is seller-biased. The Dutch Internet auction sells many identical units, with the lowest successful bid setting a uniform price for all winners. The Name Your Own Price auction, pioneered by Priceline, lets buyers state what they will pay. The penny (bidding-fee) auction charges bidders a non-refundable fee to bid.