Editing Auction (section)

===Price of bidding===<!-- a link point here -->

An [[all-pay auction]] is an auction in which all bidders must pay their bids regardless of whether they win. The highest bidder wins the item. All-pay auctions are primarily of academic interest, and may be used to model lobbying or bribery (bids are political contributions) or competitions such as a running race.<ref>[[#Milgrom2004|Milgrom, 2004: p119]]</ref> [[Bidding fee auction]], a variation of all-pay auction, also known as a penny auction, often requires that each participant must pay a fixed price to place each bid, typically one penny (hence the name) higher than the current bid. When an auction's time period expires, the highest bidder wins the item and must pay a final bid price.<ref>{{cite news|url=http://www.huffingtonpost.com/grace-nasri/the-seduction-of-the-penn_b_846221.html|title=The Seduction of the Penny Auction|access-date=2011-04-27 | work=Huffington Post|first1=Grace|last1=Nasri|date=2011-04-07}}</ref> Unlike in a conventional auction, the final price is typically much lower than the value of the item, but all bidders (not just the winner) will have paid for each bid placed; the winner will buy the item at a very low price (plus price of rights-to-bid used), all the losers will have paid, and the seller will typically receive significantly more than the value of the item.<ref name="reviewopedia">{{cite web|title=QuiBids.com Reviews – Legit or Scam?|url=http://reviewopedia.com/workathome/quibids-com-reviews-is-quibids-a-scam/|publisher=Reviewopedia.com|access-date=13 November 2012|archive-date=1 February 2013|archive-url=https://archive.today/20130201080830/http://reviewopedia.com/workathome/quibids-com-reviews-is-quibids-a-scam/}}</ref> A '''senior auction''' is a variation on the all-pay auction, and has a defined loser in addition to the winner. The top two bidders must pay their full final bid amounts, and only the highest wins the auction. The intent is to make the high bidders bid above their upper limits. In the final rounds of bidding, when the current losing party has hit their maximum bid, they are encouraged to bid over their maximum (seen as a small loss) to avoid losing their maximum bid with no return (a very large loss). Another variation of all-pay auction, the '''top-up auction''' is primarily used for charity events. Losing bidders must pay the difference between their bid and the next lowest bid. The winning bidder pays the amount bid for the item, without top-up. In a [[Chinese auction]], bidders make sealed bids in advance and their probability of winning grows with the relative size of their bids.<ref name="chinese">{{cite web|url=https://www.fundraiserhelp.com/chinese-auction.htm|title=Chinese Auction|website=Fundraising Help|date=17 January 2006}}</ref>