With transparent price setting, well-designed auctions enhance competition and improve the allocation of goods and services. Auctions used separately or in combination with negotiations can increase the value from trade in most economic contexts.

If the traded commodity is well specified, a simple price auction is probably the most efficient way to trade. However, with difficulties in describing the commodity before the auction, more advanced auctions should be used or simple auctions should be used in combination with traditional negotiations.

Simple auctions that focus on enhancing price competition may be used in combination with negotiations. As examples, an initial price auction may select the parties for intermediate negotiations, and a final price auction may ensure an efficient price settlement with the negotiated product or service characteristics.

In many cases auctions require some level of sealed bidding and with that a third party trusted by all parties. Reasons for having entirely or partly sealed bids are many - safeguarding the participants' private information and preventing collusion * are two important reasons. In our knowledge base you can read more about why Confidentiality >> is important and how we address Collusion >>

Partisia Market Design develops and customizes state-of-the-art auction markets based on our innovative, secure, simple and efficient approach.

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