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Related Flashcards
Related Topics
Cards In This Set
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English auctions
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Bidders publicly
announce their successive higher bids until no higher bid is forthcoming.
English auctions are open auctions.
Yankee auctions- English auctions that offer multiple units of an item
for sale
Disadvantages - Winning bidders tend not to bid their full
private valuations -Bidders risk becoming caught up in the excitement of
competitive bidding
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Dutch auctions:
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Also called descending-price auctions - Form of open
auction in which bidding starts at a high price and drops until a bidder
accepts the price - Often better for the
seller - Good for moving large numbers of commodity items quickly
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First-Price Sealed-Bid Auctions
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Bidders submit their bids independently the highest
bidder wins
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Second-price sealed-bid auction:
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Highest bidder is awarded the item at the price bid by
the second-highest bidder - Also known as Vickrey auctions
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Open-outcry double auctions:
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Buy and sell offers are shouted by traders standing in
a small area on the exchange floor used by Chicago Board of Trade
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Double auction:
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Buyers and sellers each submit combined
price-quantity bids to an auctioneer,
can be either sealed bid or open outcry – New York Stock Exchange
conducts sealed bid
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Reverse auction:
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Multiple sellers submit price bids to an auctioneer
who represents a single buyer - Bids are for a given amount of a specific item
that the buyer wants to purchase
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Auction escrow services
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An independent party that holds a buyer’s payment
until the buyer receives the purchased item and is satisfied with it
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Auction directory and information services:
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¨ Offer guidance for new auction participants -Offer helpful
hints and tips for more experienced buyers and sellers along with directories
of online auction sites
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Auction software:
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For sellers, these companies offer software and
services that can help with or automate tasks such as image hosting,
advertising, page design, bulk repeatable listings, feedback tracking and
management, report tracking, and email management. For buyers, a number of
companies sell auction sniping software.
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Sniping software:
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Auction software that observes auction progress until
the last second or two of the auction clock, then places a bid high enough to
win the auction
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Auction consignment services:
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Create an online
auction for an item-Handle the transaction -Remit the balance of the proceeds
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Open auction
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: An open auction
means that the bids are publicly announced
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Contract:
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promise or set of promises between two or more legal
entities that provide for an exchange of value between or among them
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Implied contract:
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When two or more parties act like a contract exits
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