Interactive Glossary

BROWSE:

Auction:

Any of a number of methods for determining sales price. Interested parties place bids and the highest bidder obtains the item if the bid is greater than the reservation price (minimum acceptable bid). Alternatively, there can be an auction for a subsidy to provide a service (say, to a high cost, un-served geographic area); in such cases, the lowest bid wins the subsidy. There are a number of different types of auctions with a variety of characteristics, including Dutch auctions and second price auctions (see Vickery auction).

Previously viewed words: