The book Understanding Auctions states:
The term auction covers a wide range of market mechanisms that are used to exchange products and services by determining who receives an item and how much is paid for it. Although there are different auction designs, all of them share two properties. First, they are universal, that is, they can be used to sell (or buy) anything. Second, auctions are anonymous, which means that the identities of the participants do not affect the outcome of the auction.
It then goes on to describe a wide range of mechanisms that facilitate the exchange at some agreed price, all classified as types of auctions, including:
- dynamic vs sealed bid auctions
- single item vs multi item auctions
- sequential vs simulataneous auctions
- clearing vs continuous double auctions
- combinatorial auctions
Combinations of two or more of the above are also possible and still auctions. I'm struggling to think of a market mechanism that is not an auction! So my question is what other types of market mechanisms can be said to exist?! Can someone point me to a good taxonomy of "market mechanisms"?
Aside; this paper discusses "negotiation protocols" and distinguishes between:
- General Equilibrium Market Mechanisms
- Contract Nets
But this paper is from 1999, and the author classifies 'auctions' only the conventional type - what would be single item, monopolistic forward auctions in the first authors taxonomy. "General Equilibrium Market Mechanisms" kind of seems different but, it could also be interpreted as a multi-item, simultaneous, dynamic, clearing double auction. In fact a well known mechanism used to solve for a general competitive equilibrium is the Walrasian Auction.