A bidding increment is defined by the auctioneer as the minimum amount above the previous bid that a new bid must be in order to be acceptable to the auctioneer.
For example, if the increment is $5,000 and the current high bid is $70,000, only bids above $75,000 will be entertained.
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.