Posted in Marketing and Strategy Terms, Total Reads: 560
Definition: Bidding War
Bidding War is a scenario in which two or more people are very interested in an item being auctioned and they make increasingly higher bids in order to possess the item or to try to become the new owners of the item. This process occurs at a fast pace, so that the bidders do not have time to think out their decisions and this often leads to a situation in which the successful party may end up with remorse, known as “winner’s curse”.
An unsolicited bid occurs when a party receives a bid for a product they are not looking to sell. Usually, the “successful” bid price will be much greater than the ask price, resulting in huge gains for the seller.
Clubs and Franchises bid for players in popular tournaments like the football leagues in Europe or the cricket Indian Premier League.