Primary types of auction
English auction
also known as an open ascending price auction
most common form of auction in use today
Participants bid openly against one another, with each subsequent bid higher than the previous bid.
Dutch auction
also known as an open descending price auction
In the traditional Dutch auction the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price.
Sealed first-price auction
also known as a first-price sealed-bid auction (FPSB)
Vickrey auction
also known as a sealed-bid second-price auction.
This is identical to the sealed first-price auction except that the winning bidder pays the second highest bid rather than their own
in practice Vickrey auctions are rarely used
also known as an open ascending price auction
most common form of auction in use today
Participants bid openly against one another, with each subsequent bid higher than the previous bid.
Dutch auction
also known as an open descending price auction
In the traditional Dutch auction the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price.
Sealed first-price auction
also known as a first-price sealed-bid auction (FPSB)
Vickrey auction
also known as a sealed-bid second-price auction.
This is identical to the sealed first-price auction except that the winning bidder pays the second highest bid rather than their own
in practice Vickrey auctions are rarely used
