Japanese auction
From Infogalactic: the planetary knowledge core
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A Japanese auction is a form of dynamic auction.
In a Japanese Auction, all bidders are considered in the auction with a continuously rising price. The only action that a bidder may take is to drop out of the auction. Once the bidder drops out of the auction, he or she may not re-enter the auction. The instant in which the second-to-last bidder drops out of the auction, the auction stops immediately, and the last bidder to remain gets the object at that price. It is strategically equivalent to the second price auction, even though it's a static game and the Japanese Auction is a dynamic game.
References
- Schindler, J., 2003. Late bidding on the Internet. Working paper. University of Vienna. Archived at Archive.org
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