COUNTERSPECULATION, AUCTIONS, AND COMPETITIVE SEALED TENDERS – ScienceOpen
auction-specific variables (e.g., item, quantity, date). Conditional In a first-price sealed-bid auction, bidders submit bids simultane- ously and “ Counterspeculation, Auctions, and Competitive Sealed Tenders,” Journal of Finance. , AUCTIONS, AND COMPETITIVE SEALED TENDERS. COUNTERSPECULATION, AUCTIONS, AND COMPETITIVE SEALED TENDERS . William Vickrey. COUNTERSPECULATION, AUCTIONS, AND COMPETITIVE SEALED TENDERS , Cited at RePEc: + Citations at Google Scholar by the title. highlights.
The seller may also be allowed to specify a reserve price, which is a lower limit on price acceptable to seller.
Integrated Due Date Management through Iterative Bidding
The buyers may know that a reserve price exists but they may not know what the reserve price is. We provide methods wherein bids for an auction can be processed and some bids filtered out in a decentralized manner using multiple nodes processors. Each node could be a shared-memory multiprocessor, or a distributed memory multiprocessor.
These nodes could sit in a room or could be placed geographically far apart. Each computer 10 1, 10 2. The input to each computer is a set of bids of a given auction and the output is the set of loser bids those bids which can never be part of the winning set and also those which are potential winners.
Each node could get the bids input to it from a database, or from another node, or from over the Internet i. Open-Cry Auctions In the current state of the art of auction procedure, every time any node i.
These winning bids are selected based on pre-specified rules. Each CLW method determines a set of potential winners from observing a set of bids, and rejects the remaining bids as loser bids. The purpose of the CLW determination method is to filter out loser bids quickly so that improved response times are achieved and the global method i.
Two algorithms of the CLW determination method are given below. The CGW determination method considers bids that have not been declared losers and, using pre-specified auction bidding rules, decides the set of current winner bids for auctioning N copies of a single item. A new bid v,q input at is examined in decision block to determine if the new bid is a modification and the original bid is currently a winner.
If not, then to decide whether a bid is a winner or a loser, the process takes this bid along with the set of all bids that have been processed declared either winning or losing in the auction in the past and determines a new set of winners in function block using the auction bidding rules, defined below.
Note that if the bid under consideration were a modification of a bid let us call it the parent bid submitted by the bidder in the past and the parent bid is currently a winning bid as determined in decision blockthen the processing simply involves updating the bid value of the parent bid to the bid value v of the bid under consideration in function block Notification is sent to the bidder of bid v,q in function block After the new set of winners is computed in function blocka determination is made in decision block as to whether bid v,q is a winner or a loser.
If a loser, then notification is sent to the bidder of bid v,q in function block If a winner, a message is sent to the bidder apprizing him of this status in function block An example of auction bidding rules for multiple items are: When there are two bids at different prices, the higher value bid always wins.
When there are bids at the same price but different in quantities, the higher quantity bid wins. Bidders may rebid after being outbid and the server will retain their initial bid time.
Another example of open-cry auction bidding rules are: A bid is processed to be winner if the bid value per item of the bid is greater than or equal to the current highest bid plus the increment. If two or more bids arrive at the auction and both have the same bid value then the tie will be broken based upon the time of arrival.
The bid to arrive first will be considered first, and so on. At the end of the auction the items will be allocated to the bids in the decreasing order of the bid value per item. That is the bid with the highest bid value is considered first and then the next highest bid, and so on.
Further examples of such bidding rules may be found at the Yahoo site, the Ebay site, etc. This filter process considers a bid v,qwhere v denotes the price per unit and q denotes the quantity desired.
Also recall that N denotes the number of copies of a single item on sale.
Due-Date Management Through Iterative Bidding - Semantic Scholar
If so, the value v of the original bid is updated in function block If it is not, it is deemed a loser bid, as it can never be a winning bid, and notification is sent to the bidder in function block Otherwise it is considered a winner candidate from this process and is made accessible for further processing. The higher the position, the less the wait before the bid is moved to the next level of processing.
The lower the position, the higher the wait and hence the higher the possibility that the incoming bids may knock this bid from the candidate winners list. Also, in case of available capacity or other reasons e.
As in the previous methods, if the bid under consideration is a modification and the original bid is currently a winning bid amongst the bids, whose information is available to this method, then the processing simply amounts to updating the bid value v in function blockand notification is sent to the bidder in function block This process uses a Buffer Filter.
A determination is made in decision block as to whether the bid v,q is a winner.
These winner bids are called candidate winner bids and can be processed using other methods in function block The losers are referred to as loser bids, and notification is sent to the bidders in function block The buffer x is decided based on trade-off between the degree of filtration needed and the accuracy of the process.
The smaller x, the more the bids rejected and hence higher the degree of filtration. On the other hand, for small x it is possible though unlikely that we may reject bids that would have been part of the winner set if only CGW process was used and CLW was never used. Algorithm for Processing a Bid We now describe the main algorithm that a node executes to process a bid input to it.
The process is shown in FIG. A node takes a bid v,q for processing at input block A determination is first made in decision block as to whether administrative tasks have been completed.
The choice of the method could be based on the priority assigned to the bid, the incoming traffic to the auction, etc. The bid is processed using the chosen method. If the administrative tasks have not been completed, as determined in decision blockthe node also has to perform other tasks in function block before it can decide whether a bid is a loser or a winner. Note that all these tasks can be accomplished by dedicated nodes. In a descending price open cry auction, the bid increment is negative and winners are determined from amongst the lowest bids received as opposed to the highest bids in an ascending price open cry auction.
Descending Price Auction As we described above, the distinguishing feature of a descending price auction is that the supplier or auctioneer decrements the asking price per unit. The amount by which the price is decremented could be different for different decrement epochs in time. Upon a price decrement, it may happen that a large number of buyers bid simultaneously because the asking price is within their reach.
In practice, an auction advertised as "absolute" or "no-reserve" may nonetheless still not sell to the highest bidder on the day, for example, if the seller withdraws the item from the auction or extends the auction period indefinitely,  although these practices may be restricted by law in some jurisdictions or under the terms of sale available from the auctioneer.
Reserve auction is an auction where the item for sale may not be sold if the final bid is not high enough to satisfy the seller; that is, the seller reserves the right to accept or reject the highest bid. In the latter case, the decision to accept a bid is deferred to the auctioneer, who may accept a bid that is marginally below it. A reserve auction is safer for the seller than a no-reserve auction as they are not required to accept a low bid, but this could result in a lower final price if less interest is generated in the sale.
COUNTERSPECULATION, AUCTIONS, AND COMPETITIVE SEALED TENDERS
This, coupled with the dynamic bidding process, improves the chances of reaching the fair market value of the item. The top two bidders must pay their full final bid amounts, and only the highest wins the auction. The intent is to make the high bidders bid above their upper limits.
In the final rounds of bidding, when the current losing party has hit their maximum bid, they are encouraged to bid over their maximum seen as a small loss to avoid losing their maximum bid with no return a very large loss.
Silent auction is a variant of the English auction in which bids are written on a sheet of paper. At the predetermined end of the auction, the highest listed bidder wins the item. Other variations of this type of auction may include sealed bids.
- COUNTERSPECULATION, AUCTIONS, AND COMPETITIVE SEALED TENDERS
- Counterspeculation and competitive sealed tenders dating
- COUNTERSPECULATION, AUCTIONS, AND COMPETITIVE SEALED TENDERS
Losing bidders must pay the difference between their bid and the next lowest bid. The winning bidder pays the amount bid for the item, without top-up. Once only two bidders remain, each submits a sealed bid. The higher bidder wins, paying either the first or second price. Both finalists receive a premium: Other auction types also exist, such as Simultaneous Ascending Auction  Anglo-Dutch auction,  Private value auction,  Common value auction Genres[ edit ] The range of auctions that take place is extremely wide and one can buy almost anything, from a house to an endowment policy and everything in-between.
Some of the recent developments have been the use of the Internet both as a means of disseminating information about various auctions and as a vehicle for hosting auctions themselves. Here is a short description of the most common types of auction. This section possibly contains original research. Please improve it by verifying the claims made and adding inline citations.
Statements consisting only of original research should be removed.
September Learn how and when to remove this template message Government, bankruptcy and general auctions are amongst the most common auctions to be found today. A government auction is simply an auction held on behalf of a government body generally at a general sale. Here one may find a vast range of materials that have to be sold by various government bodies, for example: Also in this group you will find auctions ordered by executors who are entering the assets of individuals who have perhaps died in testate those who have died without leaving a willor in debt.
Motor vehicle and car auctions — Here one can buy anything from an accident-damaged car to a brand new top-of-the-range model; from a run-of-the-mill family saloon to a rare collector's item. Police auctions are generally held at general auctions although some forces use online sites including eBay to dispose of lost and found and seized goods. Land and property auctions — Here one can buy anything from an ancient castle to a brand new commercial premises. Antiques and collectibles auctions hold the opportunity for viewing a huge array of items.
Internet auctions — With a potential audience of millions the Internet is the most exciting part of the auction world at the moment. Led by sites in the United States but closely followed by UK auction houses, specialist Internet auctions are springing up all over the place, selling everything from antiques and collectibles to holidays, air travel, brand new computers, and household equipment.
Titles — One can buy a manorial title at auction. Every year several of these specialist auctions take place. However, it is important to note that manorial titles are not the same thing as peeragesand have been described as "meaningless" in the modern world.
The attraction is that someone else has already paid substantially to set up the policy in the first place, and one will be able with the help of a financial calculator to calculate its real worth and decide whether it is worth taking on.
On-site auctions — Sometimes when the stock or assets of a company are simply too vast or too bulky for an auction house to transport to their own premises and store, they will hold an auction within the confines of the bankrupt company itself.
Bidders could find themselves bidding for items which are still plugged in, and the great advantage of these auctions taking place on the premises is that they have the opportunity to view the goods as they were being used, and may be able to try them out.
Bidders can also avoid the possibility of goods being damaged whilst they are being removed as they can do it or at least supervise the activity.