Briefly describe the difference between the mechanism of an oral or English auction and a Vickrey or second price auction. Is there any difference between the winning bidders in the two auctions, and the winning payments made in the two auctions? Briefly explain.© BrainMass Inc. brainmass.com July 17, 2018, 7:24 pm ad1c9bdddf
The mechanism of an oral or English auction is an open outcry auction. It is a progressive auction in which, the auctioneer releases relevant auctions with the help of announcing a suggested opening bid. In this suggested opening bid, there is a provision of the starting price, and then acceptance of higher bids occur with the probable interest in them. As the name suggests, this is an open outcry auction; therefore, it is entirely transparent. All the bidders know each other at the time of auction (Harstad & Rothkopf, 2000).
On the other hand, a Vickrey or second price auction is a sealed bid auction, which has some dissimilarity than English auction. It is not an open auction, because bidders propose written bids without recognizing the pertinent bid of the other ...
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