Editing Auction (section)

===Price development===
Auctions can be categorized into three types of procedures for auctions depending on the occurrence of a price development<ref name="priceneg"/> during an auction run and its causes.

====Driven by bidders only====
[[File:Auction.jpg|thumb|upright=1.5|An auctioneer and assistants scan the crowd for bidders.]]
* [[English auction]], also known as an ''open ascending price auction''. This type of auction is arguably the most common form of auction in use today.<ref name="#Krishna2002|Krishna, 2002: p2" /> Participants bid openly against one another, with each subsequent bid required to be higher than the previous bid.<ref name="McAfee"/> An auctioneer may announce prices, bidders may call out their bids themselves (or have a proxy call out a bid on their behalf), or bids may be submitted electronically with the highest current bid publicly displayed.<ref name="McAfee" /> In some cases a maximum bid might be left with the auctioneer, who may bid on behalf of the bidder according to the bidder's instructions.<ref name="McAfee" /> The auction ends when no participant is willing to bid further, at which point the highest bidder pays their bid.<ref name="McAfee" /> Alternatively, if the seller has set a minimum sale price in advance (the 'reserve' price) and the final bid does not reach that price the item will remain unsold.<ref name="McAfee" /> Sometimes the auctioneer sets a minimum amount, sometimes known as a bidding increment, by which the next bid must exceed the current highest bid.<ref name="McAfee" /> The most significant distinguishing factor of this auction type is that the current highest bid is always available to potential bidders,<ref name="McAfee" /> although at that time there may be higher absentee bids held by the auctioneer which are not known to potential bidders. The English auction is commonly used for selling goods, most prominently antiques and artwork,<ref name="McAfee" /> but also secondhand goods and [[real estate]].
* [[Auction by the candle]]. A type of auction, used in England for selling ships, in which the highest bid laid on the table wins after a burning candle goes out.
* [[English auction#Scottish auction|Scottish auction]] is an auction where all bidding should be completed within a certain time interval, which allows bidders an appropriate amount of time for consideration and avoids precipitate actions.<ref>{{cite book |last1=Hultmark |first1=Christina |last2=Ramberg |first2=Christina |last3=Kuner |first3=Christopher |title=Internet Marketplaces: The Law of Auctions and Exchanges Online |year=2002 |publisher=Oxford University Press |isbn=978-0-19-925429-3 |url=https://books.google.com/books?id=XlNoeBNcZ80C&pg=PA39 |access-date=29 August 2020 |language=en}}</ref>

====Partially driven by time====
[[File:Bundesarchiv B 145 Bild-F004491-0002, Kirschenversteigerung an der Mosel.jpg|upright=1.5|thumb|A 1957 Dutch auction in Germany to sell fruit]]
* [[Dutch auction]] also known as an ''open descending price auction''.<ref name="#Krishna2002|Krishna, 2002: p2" /> In the traditional Dutch auction the auctioneer begins with a high asking price for some quantity of like items; the price is lowered until a participant is willing to accept the auctioneer's price for some quantity of the goods in the lot or until the seller's reserve price is met.<ref name="McAfee" /> If the first bidder does not purchase the entire lot, the auctioneer continues lowering the price until all of the items have been bid for or the reserve price is reached. Items are allocated based on bid order; the highest bidder selects their item(s) first followed by the second highest bidder, etc. In a modification, all of the winning participants pay only the last announced price for the items that they bid on.<ref name="#Krishna2002|Krishna, 2002: p2" /> The Dutch auction is named for its best known example, the [[Dutch auction|Dutch tulip auctions]]. ("Dutch auction" is also sometimes used to describe online auctions where several identical goods are sold simultaneously to an equal number of high bidders).<ref>{{Citation|author=eBay|title=Selling Multiple Items in a Listing (Dutch Auction)|url=http://pages.ebay.com/help/sell/multiple.html|access-date=2009-01-09|archive-url=https://web.archive.org/web/20081217172337/http://pages.ebay.com/help/sell/multiple.html|archive-date=2008-12-17}}</ref> In addition to cut flower sales in the [[Netherlands]], Dutch auctions have also been used for perishable commodities such as fish and tobacco.<ref name="McAfee" /> The Dutch auction is not widely used, except in market orders in stock or currency exchanges, which are functionally identical.<ref name="#Krishna2002|Krishna, 2002: p2" />
* [[Japanese auction]] is a variation of the Dutch auction with a low initial price that increases over time. As the price rises, participants must either signal intent to continue bidding or drop out of the auction, and no participant may enter or re-enter the auction once it has begun. Once only one participant remains in the auction, the auction ends and that participant wins the item at the current price. It has similarities to the [[Betting (poker)#Ante|ante]] in [[Poker]].<ref>{{cite web |url=http://www.auctusdev.com/auctiontypes.html |title=Auction Types & Terms |publisher=Auctusdev.com |access-date=2012-12-26 |archive-url=https://archive.today/20130117113233/http://www.auctusdev.com/auctiontypes.html |archive-date=2013-01-17 }}</ref>

====Single shot====
* {{vanchor|[[First-price sealed-bid auction]]}},<ref>[http://www.gametheory.net/dictionary/auctions/BlindAuction.html Shor, Mikhael, "blind auction" Dictionary of Game Theory Terms] {{webarchive|url=https://web.archive.org/web/20070504185321/http://www.gametheory.net/Dictionary/Auctions/BlindAuction.html |date=2007-05-04 }}</ref> or a sealed-bid first-price auction/blind auction, is a type of auction where all bidders simultaneously submit sealed bids so that no bidder knows the bid of any other participant. The highest bidder pays the price they submitted.<ref name="#Krishna2002|Krishna, 2002: p2" /><ref name="McAfee" /> This type of auction is distinct from the English auction, in that bidders can only submit one bid each. Furthermore, as bidders cannot see the bids of other participants they cannot adjust their own bids accordingly.<ref name="McAfee" /> From the theoretical perspective, this kind of bid process has been argued to be strategically equivalent to the [[Dutch auction]].<ref>[[#Krishna2002|Krishna, 2002: p13]]</ref> However, empirical evidence from laboratory experiments has shown that Dutch auctions with high clock speeds yield lower prices than FPSB auctions.<ref>{{cite journal |author1=Katok, E. |author2=Kwasnica, A.M. |title = Time is money: The effect of clock speed on seller's revenue in Dutch auctions |journal = [[Experimental Economics]] |volume = 11 |number = 4 |pages = 344–357 |year = 2008 |doi = 10.1007/s10683-007-9169-x|s2cid=17613279 |url = http://www.personal.psu.edu/amk17/TimeIsMoney_onlineversion.pdf }}</ref><ref>{{cite journal |author1=Adam, M. T. P. |author2=Krämer, J. |author3=Weinhardt, C. |s2cid=31932319 |title = Excitement up! Price down! Measuring emotions in Dutch auctions |journal = International Journal of Electronic Commerce |volume = 11 |number = 4 |pages = 7–39 |year = 2012 |doi = 10.2753/JEC1086-4415170201}}</ref> What are effectively sealed first-price auctions are commonly called ''tendering'' for [[procurement]] by companies and organisations, particularly for government contracts and auctions for mining leases.<ref name="McAfee" />
* [[Vickrey auction]], also known as a sealed-bid second-price auction.<ref name="Krishna, 2002: p9">[[#Krishna2002|Krishna, 2002: p9]]</ref> This is identical to the sealed first-price auction except that the winning bidder pays the second-highest bid rather than their own.<ref>[[#Krishna2002|Krishna, 2002: p3]]</ref> Vickrey auctions are extremely important in auction theory, and commonly used in automated contexts such as [[real-time bidding|real-time bidding for online advertising]], but rarely in non-automated contexts.<ref name="McAfee" />