Reverse Auctions Definition
A reverse auction is a type of auction in which the roles of buyer and seller are reversed. In a typical auction, buyers compete to obtain an item or service by offering the highest price. In a reverse auction, sellers compete to obtain business from the buyer and prices typically decrease as the sellers bid against each other.
Reverse auctions are commonly used to procurement goods and services. They can be used for other purposes such as selling advertising inventory, carbon offsets, financial instruments, real estate, and transportation services.
