Japanese auction
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A Japanese Auction is a form of dynamic auction.
In a Japanese Auction, all bidders are considered in the auction with a continuously rising price. The only action that a bidder may take is to drop out of the auction. Once the bidder drop out of the auction, he or she may not re-enter the auction. The instance in which the second-to-last bidder drops out of the auction, the auction stops immediately, and the last bidder to remain gets the object at that price. It is strategically equivalent to Generalized second-price auction, even though it's a static game and the Japanese Auction is a dynamic game.
[edit] References
- Schindler, J., 2003. Late bidding on the Internet. Working paper. University of Vienna.
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