in which one seller
offers item(s) for bidding and several buyers compete to offer
the price the seller will accept. The seller usually has the option
to accept any bid or reject all. Types of forward auction are (1) English auction: Bidding starts at the minimum price acceptable to the seller and increases with every new bid by a fixed increment
. Every bidder
knows what price is being bid and the highest price bid acceptable to the seller wins. (2) Dutch auction: Bidding starts at a price so high
will accept, and which is lowered until the best acceptable price is reached. Used typically for perishable
items like flowers and vegetables.
(3) Japanese auction: Bidding starts at a low price which goes up in regular increments. Every buyer present must bid at every stage
during the auction. (4) Yankee auction: Multiple units of an item
are put up for bidding and each bidder can specify the number or quantity
he or she wants to bid for. Also called consumer-to-consumer auction.