Forward auction

Forward auction are electronic auctions, which can be used by sellers to sell their items to many potential buyers. Sellers and buyers can be individuals, organizations etc.

Items are commonly placed at a special site for auction (e.g. eBay.com or marketdojo.com or opt-source.com). Buyers can continuously bid for the items they are interested in. Eventually the highest bidder wins the item.

Two types of forward auctions are common. The first is a liquidate auction. Here buyers seek to obtain the lowest price for an item they are interested in. The second type is a marketing efficiency auction. Buyers wish to obtain a unique item.

References

Efraim Turban et al., Information Technology Management: Transforming organizations in the digital economy (U.S.A.: John Wiley and Sons,Inc.), 175.

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