A bid is an indication by a potential buyer of the price the buyer is willing to pay for the object being auctioned.
In a Procurement Auction, the bid is an indication of the price a seller is willing to receive to offer the auctioned goods or services.
Often, a new bid must improve substantially the previous bid, as defined by the auctioneer's bidding increment.
updated: 12 August 2005
HOW TO CITE THIS ENTRY
- To learn more:
- See news articles on auctions.
- Try a winner's curse applet on the applets page.
- Read about auction experiments at e-Economics.net.
- Learn about auctions by reading lecture notes.