Uniform Price Auction


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Uniform Price Auction

A way to issue a security or commodity using the following steps. Potential buyers submit the quantity desired and a price per unit in sealed bids. When all bids are collected, the seller gives the desired quantity to the bidder who offered the highest price, then the second highest, and so forth, until all available units are sold. All buyers pay the price per unit of the lowest bid that was awarded units.

For example, suppose there are 100 available units and three bidders. Bidder A offers $45 per unit and wants 60 units; Bidder B wants 40 units at $60 per unit. Finally, Bidder C wants 30 units at $35 per unit. Under this scenario, Bidders A and B both receive their desired units and they both pay $45 per unit.
References in periodicals archive ?
The profit rate on the Sukuk will be set through a uniform price auction and will be finalized upon closing of the subscription period.
They find that the French auction (the Mise en Vente) is superior to a fixed price public offer and the uniform price auction.
The profit rate is to be set through a uniform price auction.
A similar result is found in Kagel and Levin (2005), in which they derive and analyze bidding behavior in a sealed-bid uniform price auction when synergies are present.
1 Bonds for a nominal value of NOK 3 billion will be offered by uniform price auction.
The bills are to be sold in a uniform price auction, in which successful bidders pay only the price of the lowest accepted bid.
i]/(n - 1) represents a maximum amount that agent i might have to pay for the information, as in the uniform price auction.
They find that the uniform price auction with highest-rejected-bid pricing generates more revenue than the discriminative auction when it is first in the sequence of treatments.
Next we consider a uniform price auction in which the price of each unit equals the lowest winning bid; this is the uniform-price auction recently used by the U.
The profit rate on the sukuk will be set through a uniform price auction with the issuance size to be finalised upon completion of the book-building exercise.
The experiments described address such topics as asymmetric information and bank lending, strategic default with social interactions, divisible-good uniform price auctions, dividends,
Differences between multiple-price and uniform price auctions are discussed in more detail
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