Reverse English auction

Definition
A reverse English auction

"is a buyer-driven auction that lets multiple sellers bid competitively to provide product to individual buyers. Prices move down.""

Overview
Preparation for a reverse auction usually takes the form of a buyer issuing a 'request for quotation' in which product specifications and commercial terms are presented. The buyer identifies which sellers it wants to participate in the auction. . . . Suppliers prepare their bids and submit them during the auction itself, with the option to move thei process down as bidding proceeds. A reverse auction may be organized such that the lowest bid does not automatically win. A buyer may award the contract to a bidder quoting a higher price if the difference is worth it because of quality, location, or other such considerations."