Forward auction

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Forward auction are auctions, which can be used by sellers to sell their items to many potential buyers.[1][2][3][4] Sellers and buyers can be individuals, organizations etc.

Items are commonly placed at an online auction site. Buyers can continuously bid for the items they are interested in. Eventually the highest bidder wins the item.

Two types of forward auctions are common. The first is a liquidate auction. Here buyers seek to obtain the lowest price for an item they are interested in. The second type is a marketing efficiency auction. Buyers wish to obtain a unique item.

Types of Forward Auctions[edit]

Forward Auctions can also be classified into the following 4 major Types;[5]

English Auctions[edit]

These are the most common types of forward auctions. Here the bidding price for an item starts from a minimum value and goes up as the buyers place their bids.[6][7]

Dutch Auctions[edit]

These are rare type of auction where the price of an item starts from a very high value and drops and buyers can place the bid when the price drops to a reasonable value for them.[8][9][10]

Japanese Auctions[edit]

In Japanese auctions, price of an item starts from a minimum value and goes up. When the price is too high, buyers can drop out from the bidding and this goes on until one buyer is remaining.[11][12]

Yankee Auctions[edit]

Here instead of one single item, multiple items are auctioned at the same time. Ex: instead of bidding for a single car, buyers can bid for 100 cars in one bid.[13][14]

References[edit]

  1. ^ Turban, Efraim (2006). Information Technology Management: Transforming organizations in the digital economy. U.S.A.: John Wiley and Sons, Inc.
  2. ^ Ganguly, D.; Chakraborty, Samit (2008). "E Commerce - Forward and Reverse Auction - A Managerial Tool to Succeed over Business Competitiveness". 2008 Ninth ACIS International Conference on Software Engineering, Artificial Intelligence, Networking, and Parallel/Distributed Computing: 447–452. doi:10.1109/SNPD.2008.51. ISBN 978-0-7695-3263-9.
  3. ^ Preist, Chris; Bartolini, Claudio; Byde, Andrew (2003). "Agent-based service composition through simultaneous negotiation in forward and reverse auctions". EC '03: Proceedings of the 4th ACM Conference on Electronic Commerce: 55–63. doi:10.1145/779928.779936. ISBN 158113679X.
  4. ^ Friedrich, Michael; Ignatov, Dmitry (2019). "General Game Playing B-to-B Price Negotiations" (PDF). CEUR Workshop Proceedings. Vol-2479: 89–99. |volume= has extra text (help)
  5. ^ "What is FORWARD AUCTION? definition of FORWARD AUCTION (Black's Law Dictionary)". The Law Dictionary. 2012-10-19. Retrieved 2021-04-18.
  6. ^ "Auction Legal Pack London". Creative Legals. 2021-04-18. Retrieved 2021-04-18.
  7. ^ "What is ENGLISH AUCTION? definition of ENGLISH AUCTION (Black's Law Dictionary)". The Law Dictionary. 2012-10-19. Retrieved 2021-04-18.
  8. ^ "What is DUTCH AUCTION? definition of DUTCH AUCTION (Black's Law Dictionary)". The Law Dictionary. 2011-11-04. Retrieved 2021-04-18.
  9. ^ "Auction Legal Pack Bedford". Creative Legals. 2021-04-17. Retrieved 2021-04-18.
  10. ^ "Dutch Forward Auction". www.ibm.com. 2017-11-27. Retrieved 2021-04-18.
  11. ^ "Auction Legal Pack Birmingham". Creative Legals. 2021-04-17. Retrieved 2021-04-18.
  12. ^ "What are Japanese Auctions | A Type of Step Auction". scanmarket.com. Retrieved 2021-04-18.
  13. ^ "Auction Legal Pack Manchester". Creative Legals. 2021-04-17. Retrieved 2021-04-18.
  14. ^ "What Is a Forward Auction?". Retrieved 2021-04-18.