Dictionary :: Auctions

Glossary of game theory terms.

Sealed Bid Auction

An 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).

updated: 12 August 2005
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