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| Topic: |
Business
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| Number of pages / Number of words: |
9 / 2418 |
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A first determinant is the model of bidding behaviour an auction site uses. According to Pinker, Seidmann and Varkant the most common one is the English auction, where the participants bid openly against each other and where the bidder with the highest reservation price and offer receives the good. In Dutch auctions the auctioneer begins with a high price and lowers it constantly until a buyer is willing to accept the price...
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In Dutch auctions the auctioneer begins with a high price and lowers it constantly until a buyer is willing to accept the price. In addition sealed-bid first-price auctions and sealed-bid second-price auctions can be used. All participants submit their bid simultaneously and the highest bidder pays his price or the second highest offer (2003)...
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