3.
●First-price sealed bid auctions
-Sealed-bid auctions
•Bidders submit bids independently •Prohibited from sharing information
-First-price sealed-bid auction
•Highest bidder wins
•If multiple items auctioned, next highest bidders awarded remaining items at their bid price
4
●Reverse(seller-bid)auction
-Multiple sellers submit price bids •Auctioneer represents single buyer
-Bids for given amount of specific item to purchase
-Prices go down as bidding continues •Until no seller willing to bid lower
-Occasionally operated for consumers -Mostinvolve businesses as buyers and sellers