BiG DEAL : BiG Auction Model #3 : Unique Bottom Bid
BAM 3 | UNIQUE BOTTOM BID AUCTION
Unique Bottom Bid Auction Model (BAM 3) functions in a similar fashion as Unique Top Bid Auction Model (BAM 2). The only difference here is that the winner places a ‘unique lowest bid’. The platform shows the bidder whether his bid is the lowest or not, also unique or not, and all combinations.
DEFINITION | A competition to guess and propose the unique bottom price of a product.
MODEL/TYPE | On-the-house product listing
DOMINANCE | Chance (skill vs. chance)
BiG DEAL revenue:
- Consumption of BiG Tokens to convert to PLAYs
- The final bid price the winner pays
- Sell services | Low
- Sell goods | High
- Sell experiences | Low
- Sell digital assets (NFTs) | Low
INTERBIDDER BID PRICE | Closed
TOKEN ESCROW (WINNER BINDING)| No
AUCTION TIME SENSITIVITY| Till a predefined number of bids are not reached
BOT BIDS POSSIBLE| Yes
MULTIPLE BIDS FROM ONE PARTICIPANT| Yes
BID OPPONENT| The participants
- Only a single winner
- The winner will have the lowest and unique proposed/bid price
WIN WIN WIN applicability | High
- House wins | Revenue from the sale of $BiG Tokens to participate
- Winners win | They get the product at the unique + lowest price they bid
- Non-winners win | A certain percentage of their PLAYs will be carried forward. They don’t lose it all. Also, we can have the BUY NOW mechanism for all who did not win. This empowers the non-winners to pay the difference amount and claim the product.
Example | We list a product (example: Mercedes Benz Car with retail price of $1,00,000). Interested participants will place unique lowest bids with up to 2 decimal places. The lowest they can place is $0.01. Again, participants can see only their own bid price. But for every bid a participant places he/she will be able to see that their bid is any of the following:
- Lowest and unique
- Lowest but not unique
- Unique but not the lowest
- Not unique and not the lowest
*Looking at this, a participant decides whether to place the next bid or not. The bidder can see their bid log. To win, a buyer’s bid must be the lowest and unique. If a bidder wins, they get to buy the product at their low price, which is the bidder’s unique price. If a bidder doesn’t win, they lose their bids and their amount. But, again on the BiG DEAL platform, we give each non-winner a chance to BUY NOW by paying the difference amount.
UNIQUE BOTTOM BID AUCTIONS BID PROCESS.
The mathematics for BAM2 and BAM3 | For a bidding price up to 2 decimal places, the total number of unique prices (bids) possible are equivalent to the product price x 100.
So, for a car (Mercedes Benz of $100,000) there can be a maximum of 10 million unique prices theoretically. At $0.1 per bid (theoretically), the platform can consume bids worth
$1 million (if each bid is unique). And, additionally, the same bid price will be bid by multiple participants, taking the possible revenue generation to great numbers.
However, this best-case scenario would never happen practically. For the BiG DEAL platform to make the auction viable and profitable, the break-even point must be calculated and should be implemented as part of the business logic. BiG DEAL also understands that some of the bidders might choose to exercise the BUY NOW option and the platform loses its profit margin in these instances. The BiG DEAL platform will consider all possible cases and the business logic will be implemented cognisant of these variables.
FOLLOW US ON :
🔸Website : https://thebig.deals
🔸Twitter : https://twitter.com/thebigdeal_play
🔸Telegram : https://t.me/thebigdealchat
🔸Contract : https://contract.thebig.deals/
🔸Medium : https://thebigdeal.medium.com
🔸Instagram : https://www.instagram.com/thebigdeal_official/
🔸Email : firstname.lastname@example.org