Japanese Auction
An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder.
A Japanese auction is a specific type of auction that is commonly used in procurements. In a Japanese auction, all bidders start with the same price. The price then goes up in increments until only one bidder remains. That final bidder wins the auction.
Japanese auctions are often used in procurements because they are seen as fair. All bidders have an equal chance of winning, and no one has an advantage over the other bidders. Japanese auctions can also be used to encourage competition among bidders, which can result in lower prices.