Silent bidding is a type of auction where bidders submit their offers privately rather than openly competing in real time.

Example:

• The seller lists an item in a silent bid auction.
• Hundreds of bidders submit offers on the item.
• The highest three bids are $7,500, $7,800, and $8,650.
• The $8,650 bid wins.
• None of the bidders see the other bids—only the final winning bid is revealed.