A type of sequential second price auction, similar to an English auction in which an auctioneer regularly raises the current price.
Participants must signal at every price level their willingness to stay in the auction and pay the current price.
Thus, unlike an English auction, each participant must bid at each level to stay in the auction.
The auction concludes when only one bidder indicates his willingness to stay in.
This auction format is also known as the button auction.
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.