Sealed-Bid Auction

A Sealed-Bid Auction is an auction where submitted bids have values that are unknown to auction competitors.

• Context:
  • It can typically involve Simultaneous Bid Submission through sealed-bid auction private channel.
  • It can typically prevent Bid Visibility until sealed-bid auction completion time.
  • It can typically require One-Time Bidding Strategy without sealed-bid auction price adjustment opportunity.
  • It can typically create Information Asymmetry between the sealed-bid auction auctioneer and sealed-bid auction bidders.
  • It can typically facilitate Confidential Value Revelation through sealed-bid auction privacy mechanism.
  • It can typically reduce Strategic Interaction between sealed-bid auction competitors during the sealed-bid auction process.
  • ...
  • It can often incorporate Reserve Price Mechanism to establish sealed-bid auction minimum acceptable value.
  • It can often involve Bidder Qualification Process for sealed-bid auction participation eligibility.
  • It can often utilize Digital Security Protocols for sealed-bid auction electronic submission.
  • It can often prevent Collusion Opportunity through sealed-bid auction information restriction.
  • It can often create Strategic Uncertainty about sealed-bid auction competitor valuation.
  • It can often require Formal Documentation of sealed-bid auction bid validity.
  • ...
  • It can range from being a Single-Item Sealed-Bid Auction to being a Multi-Item Sealed-Bid Auction, depending on its sealed-bid auction lot structure.
  • It can range from being a First-Price Sealed-Bid Auction to being a Second-Price Sealed-Bid Auction, depending on its sealed-bid auction payment rule.
  • It can range from being a Single-Round Sealed-Bid Auction to being a Multi-Round Sealed-Bid Auction, depending on its sealed-bid auction iteration structure.
  • It can range from being a Single-Winner Sealed-Bid Auction to being a Multi-Winner Sealed-Bid Auction, depending on its sealed-bid auction allocation design.
  • It can range from being a Private-Value Sealed-Bid Auction to being a Common-Value Sealed-Bid Auction, depending on its sealed-bid auction value structure.
  • It can range from being a Complete-Information Sealed-Bid Auction to being an Incomplete-Information Sealed-Bid Auction, depending on its sealed-bid auction knowledge distribution.
  • ...
  • It can facilitate Efficient Resource Allocation through sealed-bid auction competitive pricing.
  • It can mitigate Price Discovery Transparency to prevent sealed-bid auction market manipulation.
  • It can support Government Procurement through sealed-bid auction standardized process.
  • It can enable Asset Liquidation through sealed-bid auction competitive valuation.
  • It can implement Revenue Maximization Strategy through sealed-bid auction design optimization.
  • ...
• Examples:
  • Commercial Sealed-Bid Auctions, such as:
    • Corporate Asset Sealed-Bid Auctions for sealed-bid auction business equipment.
    • Real Estate Sealed-Bid Auctions for sealed-bid auction property sale.
    • Private Collection Sealed-Bid Auctions for sealed-bid auction rare item valuation.
  • Government Sealed-Bid Auctions, such as:
    • Treasury Bill Sealed-Bid Auctions for sealed-bid auction government debt.
    • Public Procurement Sealed-Bid Auctions for sealed-bid auction service contract.
    • Military Surplus Sealed-Bid Auctions for sealed-bid auction equipment disposal.
  • Design Variant Sealed-Bid Auctions, such as:
    • First-Price Sealed-Bid Auction where the sealed-bid auction winner pays their sealed-bid auction bid amount.
    • Second-Price Sealed-Bid Auction (Vickrey) where the sealed-bid auction winner pays the sealed-bid auction second-highest bid.
    • All-Pay Sealed-Bid Auction where all sealed-bid auction bidders pay their sealed-bid auction bid amount.
  • Multi-Unit Sealed-Bid Auctions, such as:
    • Discriminatory Sealed-Bid Auction with sealed-bid auction pay-as-bid pricing.
    • Uniform-Price Sealed-Bid Auction with sealed-bid auction single clearing price.
    • Generalized Second-Price Sealed-Bid Auction for sealed-bid auction sequential allocation.
  • Specialized Sealed-Bid Auctions, such as:
    • Spectrum License Sealed-Bid Auction for sealed-bid auction telecommunication rights.
    • Online Ad Sealed-Bid Auction for sealed-bid auction digital advertising space.
    • Carbon Credit Sealed-Bid Auction for sealed-bid auction emissions allowance.
  • ...
• Counter-Examples:
  • Open-Cry Auctions, such as:
    • English Auction with ascending bid format visible to all auction participants.
    • Dutch Auction with descending price visible throughout the auction process.
    • Japanese Auction with continuous price increase and public participant withdrawal.
  • Sequential Bidding Auctions, such as:
    • Fisherman Auction with sequential lot offering and visible bid processing.
    • Round-Robin Auction with iterative bidding and transparent price discovery.
  • Combinatorial Open Auctions allowing package bidding with visible competing bids.
  • Double Auctions with simultaneous buyer and seller bidding and transparent price matching.
  • Non-Auction Market Mechanisms, such as:
    • Fixed Price Sale with predetermined value rather than competitive bidding.
    • Negotiated Sale with direct price discussion rather than sealed bid submission.
    • Posted-Offer Market with seller-determined pricing rather than buyer bid collection.
• See: Bidding, Auction Theory, First-Price Auction, Second-Price Auction, Vickrey Auction, Mechanism Design, Revenue Equivalence Theorem, Winner's Curse.

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References

2020

• (Wikipedia, 2020) ⇒ https://en.wikipedia.org/wiki/Auction#Sealed_bid Retrieved:2020-2-27.
  • Sealed bid - a submitted bid whose value is unknown to competitors.

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