A minimum bid is the smallest acceptable bid in an auction.
An opening bid, the first bid placed in the auction, must be at least as high as the minimum bid or the object remains unsold.
Unlike a reserve price, a minimum bid is always known to the auction participants and canot change over the course of the auction.
updated: 12 August 2005
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.