2 Same bids in an Auction: What happens next ?
An auction is a system of buying and selling goods or services by a bidding process. This process allows bidders to bid for the products or services and whoever bids the highest price wins the auction. Initially the auctioneer sets a price and then attracts the bidders to place their bids. The whole process completes when the vendor accepts the highest bid and the bidder pays for the goods or services.
But the question arises, when the two bidders place the same prices. In this article, we will show what happens when the same bids are placed in an auction.
First bidder wins the auction: If the two bidders place the same bids, the first person placing the bid will be declared the winner of that auction. In the normal process, a person has to bid a higher amount than the previous bid to win the auction.
When you place the same bid as the previous one, the system will show that you are not leading this auction. The system is designed in a way that it will automatically show the previous bidder as the leader in this particular auction. If your maximum bid ties with the earlier bid, the earlier bidder will be regarded and listed on the website as the current high bidder.
However, the auctioneer may ask the other bidder to increase the bid amount. No auctioneer wants to fall into this situation where two bidders place the same bids. If the other bidder increases the bid amount as asked by the auctioneer, he will be declared the winner. But if not, the first bidder will acquire the product or service.
Tie breaking rule:In other cases, there are some “tie-breaking rules” set by the auctioneer depending on the type of auction. The auctioneer might resolve this issue with a random number generator. In rare cases, there could be another of bids operated by the authority. It all depends upon the rules and regulations set by the auction authority. All of these bidding rules will be notified to the bidders before the auction starts.
Same bids not allowed:There are some cases in online bidding processes where the system is designed in a way that you cannot bid the same amount if the earlier bidder placed the same bid. The system will not allow you to proceed with your bid.It will notify you and request you to place a higher bid than the previous amount.
In an auction, the same bids can be placed by the bidders but one bidder will ultimately win the auction. It is not possible to call both of them the winner of the auction. It all depends upon the auction authority how they will manage the issue. In this article, we have discussed some common phenomena that can happen if you place the same bids as the previous bidder. You should be more careful while participating in an auction and be aware of the bidding rules and regulations beforehand.