Auction — a public sale with the award of the sold product to the winner of the auction in accordance with predetermined rules. Competition between the participants characterizes it.
Types of auctions:
- English auction — sale at the highest bid.
- Dutch auction — a sale with a reduction of the declared price to the value that the participant who first announced it is willing to pay.
- Forward auction — starts with the seller announcing the sale of a product.
- Reverse auction — starts with the buyer announcing the desire to purchase the product.
- Open auction — bidders are aware of the announced value and the bids made.
- Closed auction — auction participants are not aware of the announced value and/or the value of bids of other participants.