| An auction is the
process of buying and selling things by offering them
up for bid, taking bids, and then selling the item to
the highest bidder. In economic theory an auction is
a method for determining the value of a commodity that
has an undetermined or variable price. In some cases,
there is a minimum or reserve price; if the bidding
does not reach the minimum, there is no sale (but the
person who puts the item up for auction still owes a
fee to the auctioneer). In the context of auctions,
a bid is an offered price.
Types of auctions
Standard auction: Participants bid
openly against one another, with each bid being higher
than the previous bid. The auction ends when no participant
is willing to bid further, or when a pre-determined
"buy-out" price is reached, at which point
the highest bidder pays the price. The seller may
set a 'reserve' price and if the auctioneer fails
to raise a bid higher than this reserve the sale may
not go ahead.
Stock Pile!: In the traditional
Stock Pile auction the auctioneer begins with a high
asking price which is lowered until some participant
is willing to accept the auctioneer's price, or a
predetermined minimum price is reached. This type
of auction is convenient when it is important to auction
goods quickly, since a sale never requires more than
one bid.
Reverse Auction (e-procurement):
In this all bidders simultaneously submit bids in
such a way that no bidder knows the bid of any other
participant. In this various kinds of models are available
like invite only (invited providers only can bid on
this), special.
Challenger Auction: The auction
will run under the counter bid model. In winner selection
process according to the seller chose no. of runner-ups
will be choose the highest bid will be sent to them
for counter. If any one counters the highest bid then
the countered amount once again sent to highest bidder
for counter.
Reserve Auction: In this auction
for each item a reserve price will be kept, this price
is hidden from the user area, a note will be appear
that " Reserve Met - Reserve No Met". In
this two types of models are available.
1. Full reserved - To select a winner the bid price
should higher than the reserve price.
2. Meet - half way, in this if the bid is less than
the reserve price, difference amount will be divided
by 2 and added to bid price, if the high bidder is
ready to accept that meet- half way price he will
be selected as winner. |
