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There is an idea related to this: an English auction is the familiar auction where the bidders submit increasing bids, until no one will bid higher. An alternative is a sealed bid second auction: everyone submits a sealed bid, the highest bid wins, but pays the second highest price bid. This is theoretically equivalent to an English auction because in the English auction, you only have to bid a penny (or the minimum increment) above the second highest bid to win. Like your proposal, the sealed bid second auction doesn't require an elaborate bidding procedure. Of course in your case, both parties are submitting bids (a double oral auction), and I don't know if much is known about equivalent sealed bid procedures.
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In the auction literature that I know of, time saving is not a major concern becasue the model usually assume discount rate equals one. In such kind of setting, the scheme you have propose does not change any thing, i.e. the buyers will [View full text and thread]
| 04/12/2000 05:31 AM by Martin; multiple blind bids |
When buying something like a house it's usual to make a bid below the asking price, which is then rejected but the price is reduced a little, whereupon a higher bid is made until (maybe) the parties agree somewhere in the middle. This [View full text and thread]
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