The combinatorial clock auction is an auction method used to sell multiple (similar) items in a single process. There are a number of variations but to give an example: A seller offers a number of lots at a particular price and invites buyers to respond with a volume bid. If demand exceeds supply, the auctioneer increases the price and asks for feedback based on the new price. This process continues until demand and supply are in balance and the lots can be awarded at a uniform price for all bidders.
A number of industries have discovered the virtues of the combinatorial clock auctions such as mining (rough diamonds), ports (port capacity), Government licenses (carbon permits). Tradeslot has deployed combinatorial clock auctions in all of these industries and works with clients in other industries to tailor the technology.
The clear advantages of the combinatorial clock auction over multi-lateral negotiation or other formats are:
- Transparency and speed of the process
- Ability to cast a wide net (involve a large number of buyers)
- Uniform price outcome (avoiding disgruntled buyers who realize they pay more than others for the same good)
There are a handful of providers of combinatorial clock auction technology globally. The reasons why Tradeslot has evolved as the leading provider are:
- Our unmatched use of cutting edge web technology
- Usability (user centric design)
- Mobility (responsive design enabling operation on smart phones and tablets)
- Scalability (leveraging cloud computing and storage from globally recognized providers)
- Reliability (operation on geo-redundat infrastructure)
- Security (independently tested, adhering to ISO standards)