Final answer:
Reverse auctions are not initiated by sellers but by buyers, who seek to receive lower bids from multiple sellers competing to offer the best deal. The given statement is false (option 2).
Step-by-step explanation:
Are reverse auctions seller initiated? The answer is False. In a conventional auction, sellers compete to obtain business from a buyer and prices typically increase over time. However, in a reverse auction, the roles are reversed: it is initiated by the buyer, not the seller. In this setup, the buyers put out a request for a particular good or service, and multiple sellers then compete to win the business by bidding down the price.
As the auction progresses, the price decreases as sellers underbid each other in an effort to offer the best deal and win the contract. This competitive process continues until the auction ends, often resulting in lower prices for the buyer.
Hence, the answer is option 2.
Complete question is as follows :
Reverse auctions are seller initiated.
1)True
2)False