Dictionary :: Auctions

Glossary of game theory terms.

Straight Auction

A common term for an English auction, a type of sequential auction in which an auctioneer directs participants to beat the current, standing bid. New bids must increase the current bid by a predefined increment. The auction ends when no participant is willing to outbid the current standing bid. Then, the participant who placed the current bid is the winner and pays the amount bid. Often, the term "straight auction" refers specifically to an English auction in which there is no reserve price, guaranteeing that the object will be sold.

created: 24 January 2007