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Bidding Example — Reverse Auction

This example illustrates the bidding rules used when a multiple-quantity auction is auctioned with a Reverse bid type. In this example, several bidders use the AutoBid feature and some have chosen to accept less than the full quantity requested in their bids if the full quantity is not available.

This sample auction assumes the procurement of 100 items with a starting amount of $100. The bid decrement is $5, and the minimum quantity accepted is one. This auction is not sealed.

For this scenario, the following properties set in the System Preferences table:

The bidding for this auction is shown in the following tables ordered by first bid, second bid, third bid, and so on. The first part of Table 56 shows the user's bid; the second part of the table shows the result of that bid.

Table 56. First Bid in the Multiple-Quantity Offer, Reverse Auction
User Placing Bid
Min Bid Amount
Quantity Bid
Accept Partial Quantity
Mary
20
5
TRUE
Result of Bid
 
 
 
For User
Current Bid Amount (Min Bid)
Quantity Bid
Quantity Won
Mary
100 (20)
5
5

Bid Summary: Mary enters a Minimum Bid Amount of $20 for five items. Her current bid amount is set to the auction starting price of $100.

Table 57 lists the results from the second bid in the auction.

Table 57.  Second Bid in the Multiple-Quantity Offer, Reverse Auction
User Placing Bid
Min Bid Amount
Quantity Bid
Accept Partial Quantity
Don
50
100
FALSE
Results after Bid
For User
Current Bid Amount (Min Bid)
Quantity Bid
Quantity Won
Mary
50 (20)
5
5
Don
50 (50)
100
0

Bid Summary: Don places a Minimum Bid Amount of $50 for all 100 items. Because Mary was winning five of the 100 items in this auction when Don placed his bid for the full quantity with Accept Partial Quantity set to No, Mary's bid was lowered to match Don's Minimum Bid Amount. Don wins nothing in this round.

Table 58 lists the results from the third bid in the auction.

Table 58. Third Bid in the Multiple-Quantity Offer, Reverse Auction
User Placing Bid
Min Bid Amount
Quantity Bid
Accept Partial Quantity
Sarah
85
5
TRUE
Result of Bid
For User
Current Bid Amount (Min Bid)
Quantity Bid
Quantity Won
Mary
50 (20)
5
5
Don
50 (50)
100
0

Bid Summary: Sarah places a Minimum Bid Amount of $85 for five items. Her bid is rejected, however, because Don's losing bid has lowered the bid amount to $50. Sarah's Minimum Bid Amount is still above the acceptable $50 bid amount. Even though there is still quantity available in the auction, Sarah would have to bid $50 to win the five items.

Table 59 lists the results from the second bid in the auction.

Table 59. Fourth Bid in the Multiple-Quantity Offer, Reverse Auction
User Placing Bid
Min Bid Amount
Quantity Bid
Accept Partial Quantity
Bill
10
5
TRUE
Result of Bid
For User
Current Bid Amount (Min Bid)
Quantity Bid
Quantity Won
Mary
50 (20)
5
5
Bill
45 (10)
5
5
Don
0 (50)
100
0

Bid Summary: Bill enters a Minimum Bid Amount of $10 for five items. His bid amount is the current winning bid amount minus the $5 increment because his is a new bid with a later timestamp than Mary's bid. His bid for five items at $45 each is accepted.

Auction Results Summary: At the end of this auction, Mary wins five items at $50 each, and Bill wins 5 items at $45 each. Because Don would not accept less than the full quantity, he did not win any items.


 Siebel eAuction Guide 
 Published: 18 April 2003