What is a double auction?
Double auction is a sales procedure where buyers and sellers submit an offer and ask the auctioneer at the same time and this party determines the clearing price for sale. The auctioneer is not always necessary; The open outrage system used on some stock markets is an example of a double auction where no one changes between buyers and sellers. This technique can have variable impacts on prices and can move them beyond the balance. Social scientists, game theorists and economists like to look at this model to learn more about buyers and retailers' behavior. A deeper understanding of market behavior can help explain events that seem to be mediated by human activity, as a sudden increase or decline in prices. With a double action, the game theory comes to a significant game as buyers and sellers for the most advantageous position.
When the IS auctioneer includes, this person receives all offers and requests prices and determines the Clearing price, the offer that connects with the largest number of requests for sale all DFathers' commodities. Buyers who offer this price or higher will pay this price to sellers who have asked at or below this price. Sellers who have asked too much will not be clear, while the buyers who subordinate will leave with anything.
It is possible for the computer to act as an auctioneer in a double auction. The computer solves the equation to move the largest number of goods due to the required and offered prices. This can sometimes lead to a stalemate where the difference between prices is so significant that the parties cannot in the middle of a happy meeting place. In this situation, it may be necessary to restart the auction to determine the selling price.
open auction of shouts allows everyone to hear what pumps and offer. Applicants can increase their offers if they want a better chance of fulfilling the price of the application, and the request can also increase their sales prices if they feel that candidates are willing to go higher. This can result in very fastThe escalation of the price, when the parties take place against each other before hitting pricing and business activities grow less robust. Buyer and dealers of frantic in the location and use of this ceiling to make a significant profit through access to the sale of double auction.