While traditional auctions involve a single seller and many buyers, a reverse auction generally involves many sellers and one buyer.
For example, procurement auctions are used to obtain competitive bids to provide goods or services.
Theoretically, regular auctions and reverse auctions are equivalent.
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.