Brazilian auction

A Brazilian auction is a certain set of rules for a reverse auction. The buyer communicates the price she or he is willing to pay for the whole lot in advance. Then, the sellers bid on how many identical units they are willing to provide at that price. Like in English auction, bidding continues until a bid is made that no other bidder is willing to top.[1][2] Other sources define Brazilian auction as a reverse auction with similarities to Dutch auction. Like in the previous definition, the overall price is constant. But instead of the increasing price as in Dutch auction, the amount of identical items is decreasing.[3]

Not to be confused with Electricity sector in Brazil § The 2003-2004 reforms: energy auctions.

History

Brazilian auction as a variation of Dutch auction is introduced by Portum AG for Linde plc in the context of selling gas in Brazil.[4][5]

References
  1. "Using Market Dojo for: Brazilian Auctions". Market Dojo.
  2. "E-Auctions in Sourcing - eSourcingWiki". www.esourcingwiki.com.
  3. Berz, Gregor (2014). Game theory bargaining and auction strategies: practical examples from internet auctions to investment banking (Second ed.). Palgrave Macmillan. ISBN 978-1137475411.
  4. "Enterprise Sourcing Cockpit 4.5: Höhere Benutzerfreundlichkeit und neue Auktionsform". PortalDerWirtschaft.de (in German).
  5. Bernhard, Andreas. "Elektronische Auktionen und Ausschreibungen bei Linde Gas – Die Spieltheorie im E-Sourcing" (PDF). chemietechnik.de. Retrieved 29 January 2020.
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