Reverse auction
From Freepedia
A reverse auction (sometimes called a procurement auction or tender) is a type of auction in which the role of the buyer and seller are reversed. In a more typical auction, the seller puts up an item for sale, multiple buyers bid for the item and depending on the nature of the auction (English or Dutch), and one or more of the highest bidders buy the goods at a price determined by the bidding.
In a reverse auction a buyer issues a request for quotations (RFQ) to purchase a particular item. Multiple suppliers quote the price at which they are willing to supply the requested item or service. The transcation is awarded to the supplier that provided the lowest price.
Reverse auctions are commonly used to fill government and large value contracts.
From the standpoint of game theory, these auctions are formally equivalent to a more traditional auction.
