Dictionary :: Auctions

Glossary of game theory terms.

Proxy Bidder

A proxy bidder represents the interests of a bidder not physically present at the auction. Typically, the bidder will inform his proxy of the maximum amount he is willing to pay, and the proxy bidder will continue to raise bids by the predefined bidding increment until either the proxy bidder wins or the price exceeds the maximum value of the bidder. If all bidders use a proxy with a predefined maximum, an English Auction becomes identical to a Vickrey Auction.

updated: 12 August 2005
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