What is a Second-Price Auction and Why We Like It

The U.S. has witnessed a crazy housing market has in the past year with demand far outstriping supply. Buyers are involved in bidding wars by adding an escalation clause to the offer, saying that if there are competing offers, the buyer would like to bid $10k, for example, higher than the competing offer until some maximum value. If the competing offer also has an escalation clause, which is often the case in the past year, the seller will communicate with all potential buyers until no one bids higher.

--

--

--

Trader, Photographer, Computer Scientist

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

We welcome our new Advisor John Nahas

Interview Of The Week: Pablos Holman

The Online Buying Behavior has changed (part 3/4)

Africa: The next Frontier for Digital Marketeers

Starbucks: A Corporate Goliath

E-commerce in the Kingdom of Saudi Arabia: Why Retailers need to adapt to E-Commerce?

From Foot Traffic To Online Traffic

Growth Opportunities for Data Product Management

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Zhibing Zhao

Zhibing Zhao

Trader, Photographer, Computer Scientist

More from Medium

Want to Win the War on Talent? Do This

Funding options for women entrepreneurs

Andy’s Quick Hits (184): Working in off hours harms motivation

Why I’m not worried about inflation — and why you shouldn’t be either