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What is the Forward Auction? What is the Reverse Auction?

What is the Forward Auction? What is the Reverse Auction?

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A forward auction is a type of auction in which a supplier may sell its goods to many buyers.

During a forward auction several buyers compete with each other to purchase a particular item at the highest price which is acceptable for the seller.

There are two types of forward auction : liquidate auction (an auction of lowest price) and marketing efficiency auction (an auction of unique good).

A reverse auction is the reverse of a forward auction in which there will be a single buyer with several sellers

At first the buyer connects with several sellers to obtain a particular item.

The sellers then bid for the price of that item and the seller who is offering the lowest price for that item wins.

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