What is a First Price Auction ?

A First Price Auction (sometimes referred to as a First Price Sealed Bid Auction or a Blind Auction) is where bidders submit the highest bid price they are prepared to pay and the highest bidder wins.

For example, if there are three bids of $5.00, $5.50 and $6.00, then the highest bid of $6.00 is the winner and pays a final clearing price of $6.00

A First Price Auction does not see any price reduction, like a Second Price Auction does.



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Last Updated: 22-Nov-2024

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