Sealed bids can be used in multiple rounds.How is this done?
A)The winner of the first round automatically wins all future rounds.
B)The winner's price in the first round is the reservation price in the next round.If higher prices come in the next round,the highest price is the new reservation price for round three,and so forth.
C)The second best price in the first round is the winner.
D)Bidding continues in more and more rounds until someone yells "uncle."

Question

Quizplus · Accepted Answer

In this method, the winner's price in the first round becomes the reservation price in the next round, and if higher prices come in the next round, the highest price becomes the new reservation price for round three and so forth. This allows for the opportunity for bidders to improve their bids and potentially win the auction in a subsequent round.

Sealed Bids Can Be Used in Multiple Rounds