A reverse auction (sometimes called a procurement auction) is a type of auction in which the role of the buyer and seller are reversed. In a more typical auction, the seller puts up an item for sale, multiple buyers bid for the item and depending on the nature of the auction (English or Dutch), and one or more of the highest bidders buy the goods at a price determined by the bidding. An auctioneer and her assistants scan the crowd for bidders An auction is the process of buying and selling things by offering them up for bid, taking bids, and then selling the item to the highest bidder. ...

In a reverse auction a buyer puts up a request to purchase a particular item. Multiple sellers bid to sell the requested item and the winner of the auction is the seller who offers the lowest price.

Reverse auctions are commonly used to fill government contracts.

From the standpoint of game theory, these auctions are formally equivalent to a more traditional auction. Game theory is a branch of applied mathematics that uses models to study interactions with formalised incentive structures (games). It has applications in a variety of fields, including economics, international relations, evolutionary biology, political science, and military strategy. ...