This type of auction requires bidders to place bids that are global unique bids. That is, for a bid to be eligible to win no other bidder can have made a bid for the same amount. Bidders are generally able to place multiple bids and the number of current bids at each amount is typically kept secret.
There are two major variants of unique bid auctions:
- In a highest unique bid auction, the bid that is the highest and unmatched when the auction closes is the winning bid. A maximum bid value is usually set at a much lower level than the actual value of the lot.
- In a lowest unique bid auction, the bid that is the lowest and unmatched when the auction closes is the winning bid.
- Other then the basic two variants we also provide combined unique bid auction in this both type of auction are listed in one platform. So our client can run Lowest and Highest Unique Bid Auction simultaneously.
The legality of unique bid auctions depends on a combination of governing gambling laws and the design of the specific auction model. If an investigating authority were to determine that randomness or chance plays too large a role in the outcome, the auction may be considered a type of lottery. If, on the other hand, the investigating authority found strategy and skill played a sufficient enough role in the outcome, they may find the auction to be legal. Worldwide, there are no reported cases or statutes specifically outlawing the lowest-unique bid auction or Highest-unique bid auction.