Which of the following is a difference between an English auction and a Dutch auction?
A) Bids are placed publicly in an English auction, while bids are placed privately in a Dutch auction.
B) The bidder who values the good the most wins in an English auction, while the bidder who values the good the least wins in a Dutch auction.
C) An English auction is an ascending price auction, while a Dutch auction is a descending price auction.
D) An English auction is a descending price auction, while a Dutch auction is an ascending price auction.

Question

Quizplus · Accepted Answer

An English auction involves an ascending price process, where bids increase progressively until there is only one bidder remaining. On the other hand, a Dutch auction has a descending price process, where the auctioneer starts with a high price and keeps decreasing the price until a bidder accepts the price. Therefore, the correct difference between an English auction and a Dutch auction is that option C is correct. Option A is not accurate because in both auctions, bids are placed publicly. Option B is not true because the winner in both auctions is the bidder with the highest value. Option D is also not correct because English auctions are ascending price processes.

Which of the Following Is a Difference Between an English