What kind of auction is The Stove Auction?
The Stove Auction is considered a "multi-unit ascending pay-as-bid" auction:
Each bidder in the auction may submit (possibly multiple) bids, designating both the quantity of units desired in the lot and the price they are willing to pay per unit. The bids are sent only to the auctioneer. The auctioneer will reveal the current lowest and highest winning bids at certain times throughout the day of the auction to encourage re-bidding.
When the auction closes, the auctioneer then serves the highest bidder first, giving them the number of units requested, then the second highest bidder and so forth until the supply of the stoves in a specific lot is exhausted. The lowest winning bid that clears the quantity of the stoves in a specific lot becomes the market-clearing price for that stove model. And all bids that meet or exceed the market-clearing price are accepted and winning bidders pay their actual bids.
Submitting bids via SMS
SMS Bidding Process
All registered bidders will be notified of the start and end time of the auction via an SMS message from The Stove Auction on the day of the auction. During that window of time, registered bidders can SMS their bid amount and volume of stoves they want for each specific stove model available at that auction.
SMS Bid Messages from Registered Bidders
All SMS bids submitted from registered bidders must be in a specific format or "syntax". The SMS bidding syntax is as follows:
<Auction Number> <Lot Number> <Stove volume> <Price per stove>
KH0001 LOT001 200 $30
Example of 2 or more stove models
KH0001 LOT001 200 $30 LOT002 50 $15
GRAPHIC OVERVIEW OF SMS MESSAGE TYPES: