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Auctions

 

ENGLISH AUCTION

 

In the English reverse auction (Standard auction) the starting price is defined, and during the auction, suppliers compete by lowering it in accordance with the given parameters:

 

  • The buyer defines the time and duration of the auction (e.g. duration 20 minutes)
  • The buyer defines the initial price; if there is no initial price at the start of the auction, the bidder's first offer determines the initial price.

  • The buyer may specify a minimum offer reduction (for example, the new lower price must be at least HRK 500.00 less than the current price/ or the new offer must be at least 30% less than the current price).

  • The auction duration is set, but it is automatically extended based on the buyer's default settings (eg extending the auction for an additional 2 minutes if the bidder submitted a bid in the last minute)

  • The bidders' bids are the only factor used to determine price reductions.

 

JAPANESE REVERSE AUCTION

 

In a Japanese reverse auction, the buyer sets a very high starting price that automatically decreases at predetermined intervals. Bidders can choose to continue bidding or to leave the auction at that point. The vendor who remains around the longest wins:

  • The beginning time of the auction is set by the buyer, without a set duration

  • The initial price of the auction item is set by the buyer

  • The price is reduced according to a given interval (for example, every minute), and the supplier must accept a new reduced price at each interval in order to continue participating in the auction

  • By accepting the currently given price in one time interval, the bidder makes an offer and at the same time indicates his willingness to continue participating

  • When a supplier does not accept the currently set price at one of the intervals during the auction, it is assumed that the supplier is no longer willing to participate in the subsequent auction process, and the auction ends for him.

 

DUTCH REVERSE AUCTION

 

In a Dutch reverse auction, the buyer starts the auction with a very low starting price that automatically increases at set intervals. The supplier who agrees to the offer first wins and gets the job.

 

  • the initial price is set by the customer, and it automatically increases according to the given interval (e.g. every 2 minutes),

  • if no supplier accepts the given price in that time interval, the price is automatically increased by the system to a new (higher) price and a new time interval begins

  • the first supplier who accepts the set price in a certain interval is considered the supplier who won the auction

  • after the first supplier accepts the price, the auction ends immediately for all suppliers