Chapter 4

Auction

Going once, going twice... sold!

Three raised hands, one each coming out of a computer screen, a tablet and a smartphone. A gavel hitting an anvil is visible in the centre, surrounded by the three devices.

The pattern

The Auction business model is based on participative pricing: in other words, the price of a product is not determined by the vendor alone, but buyers actively influence the final price of the goods or services. Finding a price starts with a potential buyer bidding a certain amount based on his or her willingness to pay. When the auction is over, the customer who has made the highest bid is committed to purchasing the product or service.

From the point of view of buyers, the chief advantage is that they never have to spend more than they can afford or are willing to pay (WHAT?). ...

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