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
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.