There are two basic forms of auction. Bidders compete for a good, service, or right in public against one other. One form is the English, or ascending-bid, auction. Here, the bidding starts at a low price, with the auctioneer continually raising the price until only one bidder remains. The other form of public auction is the Dutch, or descending-bid, auction. Here, the auctioneer starts with a high price, and continually announces lower prices until someone accepts the offer. There are also sealed-bid auctions, in which each participant enters a bid in private, with the auctioneer then opening the bids and selecting the winning bid. In one form of sealed-bid auction, the winner pays the highest price. There is an obvious similarity between this form of ...

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