Old Dominion University

Speak Test Presentation

Topic: Auctions

Yasser Alzannan
1

Overview
Need for Auctions
Types of auction

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Definition
It

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Need for Auctions

It is hard for potential buyers to determine the
true value of an asset.
Example:
Adkkdkkdka

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Types of Auctions
1. Open Bid Auctions:
Bids are public announcements
Further divided into two types:
a)
b)

English Auction
Dutch Auction

2. Sealed Bid Auctions:

Bids are private information
There are two common types:
a)
b)

First-Price Sealed-bid Auction

Second-Price Sealed-bid Auction
Yasser Alzannan

Types of Auctions
1. Open Bid Auctions

a)

English Auction
Bid price rises until there are no further bids
Highest bid wins
Winner pays his bid.
b) Dutch Auction
Auctioneer announces a high bid and then
gradually lowers the bid
First buyer to accept wins and pays that price.

Yasser Alzannan

Types of Auctions
2. Sealed Bid Auctions

a) First-Price Sealed-bid Auction

Bids are made at the same time through
papers
Bidders do not know the bids of other players.
Highest bid wins
Winner pays his bid
b) Second-Price Sealed-bid Auction
The same bidding process as the First-Price
Auction.
However winner pays the second-highest bid

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Reserve Price
A seller specified minimum price below which
no sale is made

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Thank you!

Yasser Alzannan