Definitions for "Competitive auction"
A bidding sequence which involves both partnerships.
(1) an auction in which both sides are attempting to name the contract;(2) bidding from the point of view of the opening side when the other side enters the auction.
There are two types of competitive auctions: English and Dutch. In an English auction, bidders buy bonds at their bid price if they bid above the stop price. In a Ditch auction, bidders buy bonds at the stop price as long as their bid prices are above the stop price. For an oversubscribed auction, bids at the stop price are scaled proportionately.