Forward Auctions

Definition

Forward auctions are usually eAuctions in which the bid value steadily increases after reaching the lowest price. In such auctions, a single provider provides the goods or services, and buyers compete with one another by submitting higher bids. The bidder with the highest price wins the deal.

Benefits of Forward Auction

1. Helps in reducing costs and realising savings.
2. Any bidder, regardless of size, is eligible to participate in the auction.
3. The auction system is transparent and organized.