Types of auction

Double auction

A double auction is a process of buying and selling goods with multiple sellers and multiple buyers. Potential buyers submit their bids and potential sellers submit their ask prices to the market institution, and then the market institution chooses some price p that clears the market: all the sellers who asked less than p sell and all buyers who bid more than p buy at this price p. Buyers and sellers that bid or ask for exactly p are also included. A common example of a double auction is stock exchange. As well as their direct interest, double auctions are reminiscent of Walrasian auction and have been used as a tool to study the determination of prices in ordinary markets. A double auction is also possible without any exchange of currency in barter trade. A barter double auction is an auction where every participant has a demand and an offer consisting of multiple attributes and no money is involved. For the mathematical modelling of satisfaction level Euclidean distance is used, where the offer and demand are treated as vectors. A simple example of a double auction is a bilateral trade scenario, in which there is a single seller who values his product as S (e.g. the cost of producing the product), and a single buyer who values that product as B. (Wikipedia).

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From playlist Several Variable Calculus / Vector Calculus

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From playlist Several Variable Calculus / Vector Calculus

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From playlist Engineering Mathematics

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From playlist Advanced Calculus / Multivariable Calculus

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From playlist TOOL AUCTIONS & ESTATE SALES

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From playlist Double Angle Formulas

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Related pages

Bayesian game | Directed acyclic graph | Nash equilibrium | Myerson–Satterthwaite theorem | Walrasian auction | Incentive compatibility | Euclidean distance | Competitive equilibrium | Supply-chain auction | Budget-balanced mechanism