A. We offer several auction system models from the functional point of view, and the most popular ones are the following:
1) Classic auction model (mostly used for selling/distributing goods):
- bidding is usually free;
- the price increment after each bid is relatively high;
- in some cases the price increment is the value defined by the auctioneer; in other cases the bidder can give his or her own auction price;
- every bid may extend the auction time for some period;
- the auction ends when its time is over and there are no more bids; the last bidder has an obligation to pay the final price and the delivery/processing fee.
2) Penny auction model (mostly used for entertainment auctions):
- bidding is usually not for free (Pay-Per-Bid model);
- the price increment is usually 1 cent (1 penny);
- every bid extends the auction time for a short period (restarts timer);
- the auction ends when its time is over and there are no more bidders; the last bidder has an obligation to pay the final price (relatively low) and the delivery/processing fee, but auctioneer revenue also includes bids purchased and spent by all bidders.