Siebel eAuction Guide > Vickrey and Reverse Vickrey Auctions > Bidding Rules Used with a Reverse Vickrey Auction >

Bidding Example — Reverse Vickrey Auction

EdgeWater is a financial company trying to find credit for refinancing. They are a partner of Denver Reserve and use the Denver Reserve web site for posting auctions for refinancing credit.

They have posted an RFQ using the Reverse Vickrey bid logic for $100,000 in credit. This is a sealed auction, so they send regional banks emails to notify them of the auction.

The auction starts on January 25, 2001 at 8:00 AM EST and lasts one hour.

At exactly 9:00 AM EST, the auction closes. NationsBank, with the lowest bid, wins the auction. They pay the lowest losing bid, which is a 9.0% rate.

The lead contact for NationsBank receives an email stating that the bank has won the auction.


 Siebel eAuction Guide 
 Published: 18 April 2003