• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Manifest Learning Academy
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
JournalsOfIndia
No Result
View All Result
Home Economy

Forward and Reverse Auction

January 28, 2021
in Economy
Reading Time: 2 mins read
0
Forward and Reverse Auction
1.7k
VIEWS
Share on WhatsAppShare on TelegramShare on Facebook
image_pdfMake PDF

Forward Auction

  • Forward auctions are auctions, which can be used by sellers to sell their items to many potential buyers.
  • Sellers and buyers can be individuals, organizations etc.
  • Items are commonly placed at a special site for auction (e.g. eBay.com or marketdojo.com or opt-source.com). 
  • Buyers can continuously bid for the items they are interested in. 
  • Eventually the highest bidder wins the item.
  • Two types of forward auctions are common.
  • The first is a liquidate auction. Here buyers seek to obtain the lowest price for an item they are interested in.
  • The second type is a marketing efficiency auction. Buyers wish to obtain a unique item.

 Reverse Auction 

  • A reverse auction is a type of auction in which the traditional roles of buyer and seller are reversed. 
  • Thus, there is one buyer and many potential sellers. In an ordinary auction (also known as a ‘forward auction’), buyers compete to obtain goods or services by offering increasingly higher prices. 
  • In contrast, in a reverse auction, the sellers compete to obtain business from the buyer and prices will typically decrease as the sellers underbid each other.
  • A reverse auction is similar to a unique bid auction because the basic principle remains the same; however, a unique bid auction follows the traditional auction format more closely as each bid is kept confidential and one clear winner is defined after the auction finishes.
  • For business auctions, the term refers to a specific type of auction process (also called procurement auction, e-auction, sourcing event, e-sourcing or eRA, eRFP, e-RFO, e-procurement, B2B Auction). 
  • Open procurement processes, which are a form of reverse auction, have been commonly used in government procurement and in the private sector in many countries for many decades.

Auction

  • An auction is usually a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder or buying the item from the lowest bidder. 
  • The branch of economic theory dealing with auction types and participants’ behavior in auctions is called auction theory.
  • The open ascending price auction is arguably the most common form of auction in use throughout history.
  • Participants bid openly against one another, with each subsequent bid required to be higher than the previous bid.
  • 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.
  • Auctions were and are applied for trade in diverse contexts. 
  • These contexts are antiques, paintings, rare collectibles, expensive wines, commodities, livestock, radio spectrum, used cars, even emission trading and many more.
image_pdfMake PDF
Source: Indian Express
Tags: News PaperPrelims

Related Posts

IREDA gets ‘Infrastructure Finance Company’ status from RBI

IREDA gets ‘Infrastructure Finance Company’ status from RBI

March 15, 2023
Revamped MSME Competitive (LEAN) scheme

Revamped MSME Competitive (LEAN) scheme

March 14, 2023
Bhutan graduates from UN list of Least Developed Countries (LDC)

Bhutan graduates from UN list of Least Developed Countries (LDC)

March 13, 2023
What is hustle culture?

What is hustle culture?

March 13, 2023
Har Payment Digital mission of RBI

Har Payment Digital mission of RBI

March 9, 2023
SEBI issues framework for the adoption of cloud services

SEBI issues framework for the adoption of cloud services

March 9, 2023
Hallmark Unique Identification(HUID) number

Hallmark Unique Identification(HUID) number

March 6, 2023
SWAYATT

SWAYATT

March 3, 2023
International IP Index

International IP Index

March 2, 2023
India’s first municipal bond index- IBMX

India’s first municipal bond index- IBMX

February 28, 2023
Please login to join discussion

Our Offline Classroom Student

CONGRATULATIONS TO 2021 TOPPERS !!!

Rank 171 Kumar Shivashish
Rank 250 Sahithya
Rank 263 Sumit Kumar Thakur
Rank 311 Deepak Ramachandra Shet
Rank 455 Ravinandan B M

March 2023
MTWTFSS
 12345
6789101112
13141516171819
20212223242526
2728293031 
« Feb    

Browse by Category

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tags

AIR All India Radio BBC Business Line Business Standard dow Down to Earth DownToEarth DTE Economic Times ET FAO Financial Express GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express Indiatoday India today Kurukshetra Livelihoods portal LiveMint Mains News News Paper Newspaper PIB Prelims PRS India RSTV Science Reporter Survey The Hindu The India Express The Indian Express The Print the wire Times of India TOI TOPPERS Yojana
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tag

AIR All India Radio BBC Business Line Business Standard dow Down to Earth DownToEarth DTE Economic Times ET FAO Financial Express GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express Indiatoday India today Kurukshetra Livelihoods portal LiveMint Mains News News Paper Newspaper PIB Prelims PRS India RSTV Science Reporter Survey The Hindu The India Express The Indian Express The Print the wire Times of India TOI TOPPERS Yojana

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • SNIPPETS
  • ARTICLES
  • BROWSE
  • DOWNLOADS
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In