How do I setup a Japanese auction?
What's the issue you're facing?
I'd like to setup a Japanese auction within Market Dojo. How do I do this?
Solution
You will first need to follow the steps laid our here on how to create an event.
To add a Japanese auction on the Settings tab of your event you will need to tick the option for 'Do you want to have an Online Auction?'.
You will then need to choose the default currency of the event. *Note that this will default to the currency you have selected within your profile.
If you would like to make your event a multi-currency event please take a look at this article on how to do this.
You now need to set the auction start date and time.
Now you need to select the bid directon. You can select Forwaard or Reverse.
You now need to choose the auction type. For a Japanese auction make sure Japanese is selected.
You then need to select how long you would like each round of the auction to last for.
You will then need to select what your 'bid change as a percentage' will be and by how much you would like the bids to change by.
- You can set the Bid Levels per Lot to change each bid round based either on a percentage of the Qualification Price you have set for each Lot or based on the Latest Bid you have received for each Lot.
- If you wish to change the Bid Level by a fixed amount each time, e.g. by 1% every X minutes, then you should base the bid change on the Qualification Price. This is the most simple method and is easy for participants to predict when they will reach their limit.
- However, if you would like the Bid Change to dynamically vary from one bid round to the next then you can base your bid change on the Latest Bid for each Lot. This may help squeeze out an extra bid or two as the bid change gets smaller as time goes on.
You will then need to choose the Tied Bid Options.
This option is used to create different outcomes for the rank if two or more participants submit the same bid.
- Equal worst position - The participants will be placed into the equal worst position on submission of the same bid. For example, if the two leading participants both submit the same bid, they will each be given a position of 2, so they will both know that they need to improve.
- Equal best position - The participants will be placed into the equal best position on submission of the same bid. For example, if the two leading participants both submit the same bid, they will each be given a position of 1. This is technically correct although it might not encourage further bidding.
- Separated by timestamp - The participants will be given different ranks on submission of the same bid based on the time their bid was received by the Market Dojo server. For example if Participant A submits a leading bid at 10:40 am and Participant B submits the same leading bid at 10:41 am then Participant A will be given the rank of 1 and Participant B the rank of 2.
Once you have everything set as you would like you can press the Save and go to Next Step button in the bottom right hand corner to continue setting up your event.
Note that when you are setting up your lots if you are using the Japanese auction type then your lots must include a qualification price.
When a supplier inputs a bid, if their bid does not beat the qualification criteria they will be prevented from bidding until they input a bid that meets this.
To add a qualification price in a Simple Lot
As you are adding your lots in Simple Lots you will see a field where you can enter your qualification price for the lot.
To add a qualification price in an Advanced Lot
Once you have built your lots, or as you are building them click on the Enter Info button on a participant entered price cell.
You can then enter your qualification price here and then press Save.
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