Industrial & Management Engineering

Indian Institute of Technology, Kanpur

Assignment 15
MBA601A

Accounting and Finance

Group – 7
Submitted by:
Name: Nikhil Dubey Roll No: 22125059
Group Members:
Harshit Jain 22125041
Harsh 22125038
Rahul Balachandran 22125070

Date of submission: 11th September 2022

 MBA601A Nikhil Dubey
Assignment 15 22125059

Different types of auctions that are being practiced are:

Dutch Auction:
The object is first put up for auction at a high price that is higher than what the auctioneer had estimated
it would sell for, then the price is gradually reduced until a bidder decides to buy at that price. The
successful bidder then receives the item at the price they selected. First-price auction is another name for
this type of auction.

Sealed-bid Auction
Each bidder submits a single bid in a sealed envelope. The items are then given to the highest bidder after
all of the envelopes have been opened and counted. For properties with a small market or little appeal,
sealed bid auctions are frequently used. If the bids are too low for any of them to be accepted by the
seller, keeping the offers secret protects the property from being tarnished by having a perceived low
value in the market.

English Auction:
The most typical kind of auction is this one. In this, a reserve price is maintained, and bidding begins at
that amount and continues until no one is ready to make a fresh, higher offer. The successful bidder pays
the first price, which is why this type of auction is known as a first-price auction.

Vickrey auction:
Like in a first-price, sealed-bid auction, bids are submitted by sealed envelope in one round. The top bidder
wins the item, but only at the price offered by the second-highest bidder (or, in a case when there are
many items, the highest unsuccessful bid).

In the Book Building process, bids are accepted on the price and the number of shares that bidders are
willing to purchase at that price. This is similar to the reserve price system used in an English auction. After
that, the cut-off price is determined by taking a weighted average of those bids.