Chinese auction

Chinese auction

• Chinese auction** is a type of the [[all-pay-auction]], where the probability of winning depends on the relative size of a participant's bid. The choice of the winner is done by a lottery, whereby the bidders compete for a higher chance of winning.

Etymology The origin of the name is unknown

There is no connection to Chinese culture.

Significance Chinese auctions are usually conducted during charity events for fundraising. Political elections and patent races can be modeled as Chinese auctions, in which the chance of winning is seen as proportional to the amount spent.

Controversy Some sources consider the term "chinese auction" as derogatory.

References <references/>