<P> A Japanese auction is a variant in which the current price changes continuously according to the auctioneer 's clock , rather than by bidders ' outcries . Bidders can only decide if and when to exit the arena . At first glance , this seems equivalent to English auction : apparently , in an English auction , it is a dominant strategy for each buyer whose price is above the displayed price , to always bid the minimal allowed increment ( e.g. one cent ) above the displayed price , so the price should increase continuously . However , in real - life English auctions , jump bidding is often observed : buyers increase the displayed price much more than the minimal allowed increment . Obviously , jump - bidding is not possible in a Japanese auction . This may be seen as either an advantage or a disadvantage of the English auction format . </P>
<P> A Japanese auction is a variant in which the current price changes continuously according to the auctioneer 's clock , rather than by bidders ' outcries . Bidders can only decide if and when to exit the arena . At first glance , this seems equivalent to English auction : apparently , in an English auction , it is a dominant strategy for each buyer whose price is above the displayed price , to always bid the minimal allowed increment ( e.g. one cent ) above the displayed price , so the price should increase continuously . However , in real - life English auctions , jump bidding is often observed : buyers increase the displayed price much more than the minimal allowed increment . Obviously , jump - bidding is not possible in a Japanese auction . This may be seen as either an advantage or a disadvantage of the English auction format . </P>
what is the dominant strategy in an ascending bid ( or english ) auction
what is the dominant strategy in an ascending bid ( or english ) auction
to always bid the minimal allowed increment ( e.g. one cent ) above the displayed price
to always bid the minimal allowed increment ( e.g. one cent ) above the displayed price