Japanese auction

A Japanese auction (also called ascending clock auction) is a dynamic auction format. It proceeds in the following way.

  • An initial price is displayed. This is usually a low price - it may be either 0 or the seller's reserve price.
  • All buyers that are interested in buying the item at the displayed price enter the auction arena.
  • The displayed price increases continuously, or by small discrete steps (e.g. one cent per second).
  • Each buyer may exit the arena at any moment.
  • No exiting buyer is allowed to re-enter the arena.
  • When a single buyer remains in the arena, the auction stops. The remaining buyer wins the item and pays the displayed price.
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