Game Theory and Economic Behavior
An ascending bid strategy is a competitive bidding approach where bidders increase their offers gradually, often in response to the previous bids made by others. This method is commonly used in auction formats such as English auctions, where bidders raise their bids until no one is willing to go higher, ultimately leading to the highest bidder winning the item. This strategy not only encourages active participation but also helps create a transparent bidding environment, where each participant can gauge others' willingness to pay.
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