sealed-bid auction

A sealed-bid auction is a type of auction where bidders submit their bids privately and do not see each other's offers. Each bidder prepares a confidential bid, which is then collected and opened at a specified time. The highest bid wins, but unlike traditional auctions, there’s no real-time competition or price increases during the bidding process. This format can encourage bidders to propose their best offer without influence from others, but it can also lead to uncertainty about how much others are willing to pay. Sealed-bid auctions are often used for government contracts, real estate, and unique items.