| Online Auction involves the selling and
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| | service.
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| buying of goods by offering them up for
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| | 4. Sealed-bid second-price auction:
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| bids and consequently selling them to the
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| | Also known as Vickery auction. It is
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| highest bidder on the internet. Origin of
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| | exactly similar to sealed bid first price
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| auctions can be traced back to the 500
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| | auction, except that the highest bidder
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| B.C.
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| | pays the second highest amount and not
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| There are various types of online
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| | the highest bid. This is the bidding
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| auctions. The following are the most
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| | system used by eBay.
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| prominent ones:
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| | 5. All-pay auction:
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| 1. Chinese Auction:
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| | In this auction type all the bidders have
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| The other name of Chinese auction is
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| | to pay their bidding amount irrespective
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| tricky tray and pick-a-price. It is
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| | of the fact that they have won or not.
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| usually held at charity or fund raising
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| | 6. English Auction:
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| events. The bidders buy tickets and the
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| | This is the most common auction type
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| chance of winning is proportional to the
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| | round the globe. In this type of auction,
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| number of tickets purchased. The origin
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| | a reserve price is fixed for the goods
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| of Chinese bidding is still ambiguous.
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| | and the customers offer larger and larger
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| 2. Dutch Auction:
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| | bid. Finally, the product is sold to the
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| In this type of bidding, the auctioneer
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| | highest bidder. English auction is the
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| declares a high price for the product or
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| | most common auction type in the US and
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| service and subsequently, it is lowered
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| | most of the online auction sites use the
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| depending on whether the participants are
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| | English auction type. The biggest
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| willing to pay the pre determined amount.
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| | disadvantage of the English auction,
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| 3. Sealed-bid first price auction:
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| | which makes it a little unpopular is
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| In this type of bidding, all the bidders
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| | something known as "winner's curse".
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| simultaneously submit their bidding
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| | English auctions are often complicated
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| amount. Know bidder knows the bidding
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| | and most interesting because of
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| amount of his/her competitor. The one who
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| | strategies like snipping and proxy
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| bids the highest amount gets the product
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| | bidding.
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