Reversal of Fortune
Reverse auctions, or reverse bidding, a proven business model in advanced economies, are catching on in India, where a number of startups have sprouted to tap into opportunities in a range of sectors, reports Economic Times. In the US, for example, the leading reverse-auction player Priceline is listed on the Nasdaq and has a market value of nearly $75 billion.
What happens in a reverse auction is that instead of the service provider quoting the price, the customer makes the first move by suggesting a price she or he is willing to pay. This information is passed on to sellers on the platform, who then compete and make a counter-offer, if needed.