Forward auction are auctions, which can be used by sellers to sell their items to many potential buyers.[1][2][3][4] Sellers and buyers can be individuals, organizations etc.

Items are commonly placed at an online auction site. 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.

Comparison with reverse auctions

A forward auction is the ordinary form of auction in which one seller offers an item, asset, or service and multiple potential buyers compete by submitting bids. By contrast, in a reverse auction, the roles of buyer and seller are reversed: one buyer seeks goods or services and multiple sellers compete for the buyer's business, usually by lowering the price offered.[5]

The distinction is commonly used in electronic marketplaces and procurement. Forward auctions are seller-driven and are typically used to sell assets or goods to the highest bidder, while reverse auctions are buyer-driven and are commonly used in procurement to obtain lower prices from competing suppliers.[6]

References

  1. ^ Turban, Efraim (2006). Information Technology Management: Transforming organizations in the digital economy. U.S.A.: John Wiley and Sons, Inc.
  2. ^ Ganguly, D.; Chakraborty, Samit (2008). "E Commerce - Forward and Reverse Auction - A Managerial Tool to Succeed over Business Competitiveness". 2008 Ninth ACIS International Conference on Software Engineering, Artificial Intelligence, Networking, and Parallel/Distributed Computing. pp. 447–452. doi:10.1109/SNPD.2008.51. ISBN 978-0-7695-3263-9. S2CID 7466904.
  3. ^ Preist, Chris; Bartolini, Claudio; Byde, Andrew (2003). "Agent-based service composition through simultaneous negotiation in forward and reverse auctions". Proceedings of the 4th ACM conference on Electronic commerce. pp. 55–63. doi:10.1145/779928.779936. ISBN 158113679X. S2CID 1868153.
  4. ^ Friedrich, Michael; Ignatov, Dmitry (2019). "General Game Playing B-to-B Price Negotiations" (PDF). CEUR Workshop Proceedings. 2479: 89–99.
  5. ^ "Entering the 21st Century: Competition Policy in the World of B2B Electronic Marketplaces" (PDF). Federal Trade Commission. October 2000. Retrieved 4 October 2026.
  6. ^ "Entering the 21st Century: Competition Policy in the World of B2B Electronic Marketplaces" (PDF). Federal Trade Commission. October 2000. Retrieved 4 October 2026.
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