Table of Contents [hide]
- 1 How having more bidders in an oral auction will likely result in a higher winning bid?
- 2 What happens when you are the highest bidder?
- 3 What is the dominant strategy for bidders in an English oral auction?
- 4 How is price increased at auction?
- 5 What if only one bid is received?
- 6 What is the possible reason for rejection of the “commercial bid”?
- 7 What makes a bid proposal competitive and winning?
How having more bidders in an oral auction will likely result in a higher winning bid?
The more the number of bidders, the higher will be the winning bid. If there are few bidders, then competition will be less. This makes it easier for bidders to win even by setting a lower price.
What happens when you are the highest bidder?
When the listing ends, the highest bidder wins the auction and pays for the item. Remember, a bid is a binding contract. When you bid on an item in an auction, you’re committing to buy it if you win.
Why is the asking price higher than the bid price?
Typically, the ask price of a security should be higher than the bid price. This can be attributed to the expected behavior that an investor will not sell a security (asking price) for lower than the price they are willing to pay for it (bidding price).
What is the dominant strategy for bidders in an English oral auction?
In a private values setting, the English auction has a dominant strategy: remain bidding until one’s value is reached. When bid increments are small and bidders have private values, the bidder with the highest value wins the bidding at a price equal to the second-highest value.
How is price increased at auction?
In the auction model, the buyer is chosen by the maximum bid among all interested buyers, so the highest value determines the house prices. During the boom, the highest values increase more than the average values, making the sales price more volatile.
What happens if the highest bidder doesn’t pay?
If you do not pay, you lose the unpaid item case, it gets recorded on your account and other sellers may not do business with you. The item you “won” is re-listed so someone else can buy it.
What if only one bid is received?
48 CFR § 2414.408-70 – Award when only one bid is received.
What is the possible reason for rejection of the “commercial bid”?
Greetings of the Day! I would like to share my view or the possible reason for rejection of the “Commercial Bid”. For any RFQ, there will be many reason for rejection. If the bidder was not submitted bid by defined way (likewise format/communication Way) for submitting bid would be cause of rejection of commercial bid.
Do I need to make any additional visits after submitting my bid?
The tender documentation will specify whether or not any additional visits, interviews or presentations will be required after you submit your bid. There are a number of reasons why this might be required, and a number of ways for you to help boost your bid.
What makes a bid proposal competitive and winning?
A competitive and winning bid proposal requires a lot of time and attention to detail. Making mistakes can lead to submitting a lot of overpriced, noncompetitive bids or worse a lot of underpriced bids that you win but make no profit on.