Another term for a sealed bid auction in which bidders simultaneously submit bids to the auctioneer without knowledge of the
amount bid by other participants. Usually, the highest bidder (or lowest bidder in a procurement auction) is declared the winner.
The winner pays either the amount bid (a first price auction) or an amount equal to the next highest bid
(a second price auction).
created: 24 January 2006
HOW TO CITE THIS ENTRY
- To learn more:
- See news articles on auctions.
- Try a winner's curse applet on the applets page.
- Read about auction experiments at e-Economics.net.
- Learn about auctions by reading lecture notes.