This type of auction has been used in former Czechoslovakia to refinance credit and in Guinea, Nigeria, and Uganda for foreign exchange. In such a case, participants could bid in the ascending format and the winner would ultimately pay the price of the second-highest bid. Clearly it is imperative to seal the bid. Type Rules English, or ascending-price. Seller announces reserve price or some low opening bid.
Bidding increases progressively until demand falls.
Winning bidder pays highest valuation. Bidder may re-assess evaluation during auction. Dutch, or descending-price. Seller announces very high opening bid. Bid is lowered progressively until demand rises to match supply.