4 ms·
Why does latency matter? In a dutch auction, latency shouldn't matter at all. You can take bids in advance up to a deadline, or you can do multiple rounds of bi
by lonelappde 6y ago
Why does latency matter?
In a dutch auction, latency shouldn't matter at all. You can take bids in advance up to a deadline, or you can do multiple rounds of bidding.
Google ran their IPO as a Dutch auction, and latency didn't matter.
- bluGill 6y agoIf there are 10 lots and eleven bidders the last bidder loses and has to go high. If you realize others are going high quick enough you can up your bid before someone else and thus not lose. Even in a Dutch auction you are generally allowed to change your bid after you make it.
- rhplus 6y agoFrom Wikipedia, these markets use the “clock” variant, with the first bidder winning: “Most commonly, it means an auction in which the auctioneer begins with a high asking price in the case of selling, and lowers it until some participant accepts the price, or it reaches a predetermined reserve price. This has also been called a clock auction or open-outcry descending-price auction. This type of auction shows the advantage of speed since a sale never requires more than one bid. It is strategically similar to a first-price sealed-bid auction.” IPOs are more like the sealed-bid variant.