Level 2: Multiple Products

When it fits

Multiple defined products or obligations are being bought or sold, and bidders can express their choices as quantities at the announced prices.

How it works

• The auction proceeds through a series of rounds.
• Each product has its own announced price.
• In each round, bidders state the quantities they are willing to buy or sell at those prices.
• Where permitted, bidders can switch quantities between products as relative prices change.

What to define before bidding

• Product specifications and delivery obligations.
• Quantity units, lot sizes and increments.
• Available or required quantities, including any shared limits.
• Starting prices and round rules.
• Bidder eligibility, switching permissions, feedback, allocation and payment rules.

Advantages

• Discovers prices for multiple products in the same auction.
• Reveals how bidders value the products relative to one another.
• Where switching is permitted, lets bidders adjust their product mix as prices change.