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 generalized second-price auction, even though it's a static game and the Japanese Auction is a dynamic game.
Famous quotes containing the words japanese and/or auction:
“The Japanese say, “If the flower is to be beautiful, it must be cultivated.””
—Lester Cole, U.S. screenwriter, Nathaniel Curtis, and Frank Lloyd. Nick Condon (James Cagney)
“The white American man makes the white American woman maybe not superfluous but just a little kind of decoration. Not really important to turning around the wheels of the state. Well the black American woman has never been able to feel that way. No black American man at any time in our history in the United States has been able to feel that he didn’t need that black woman right against him, shoulder to shoulder—in that cotton field, on the auction block, in the ghetto, wherever.”
—Maya Angelou (b. 1928)