Auction designsAll Levels
Level 1: One Product
Maximizes revenue in sell-side auctions and minimizes costs in buy-side auctions.
When it fits
One defined product or obligation is being bought or sold, and bidders can express their choices as quantities at the announced price.
How it works
- The auction proceeds through a series of rounds.
- In each round, bidders state the quantity they are willing to buy or sell at the announced price.
What to define before bidding
- Product specification and delivery obligation.
- Quantity units, lot sizes and increments.
- Starting price and round rules.
- Bidder eligibility, feedback, allocation and payment rules.
Advantages
- Discovers a single market-clearing price for the quantity offered or required.
- Allocates that quantity across the winning bidders under the published auction rules.