Chair Auction

Auction Example:

Farmer Olaf is selling 100 cows.

Farmers Ryan, Jeff, Craig, Joshua, Mike, Rick, and Terry wish to bid.

Farmer Ryan bids on 20 cows at $10 per cow.
Farmer Jeff bids on 20 cows at $9 per cow.
Farmer Craig bids on 20 cows at $5 per cow.
Farmer Rick bids on 10 cows at $7 per cow.
Farmer Joshua bids on 80 cows at $5 per cow.
Farmer Terry bids on 30 cows at $2 per cow.
Farmer Terry also bids on 1 cow at $500, but will not take the cow; it's just a gift for Olaf.
Farmer Mike doesn't bid, because what he really wants are Olaf's ducks and geese.

Ranking the bids:
Farmer Terry - $500 - 1 cow
Farmer Ryan - $10 - 20 cows
Farmer Jeff - $9 - 20 cows
Farmer Rick - $7 - 10 cows
Farmers Joshua and Craig - $5 - 100 cows
Farmer Terry - $2 - 30 cows

Results:
Farmer Ryan - 20 cows at $10 each - $200
Farmer Jeff - 20 cows at $9 each - $180
Farmer Rick - 10 cows at $7 each - $70

Farmers Craig and Joshua are next, at $5.
Their bids are for 100 cows, but only 50 cows remain.
Therefore each bid will be fulfilled at at 50% rate.

Farmer Craig - 10 cows at $5 each - $50
Farmer Joshua - 40 cows at $5 each - $200

Farmer Terry - 0 cows, but $500.

Farmer Terry's offer to buy all the cows at $2 each went unfulfilled,
because all the cows were won at higher prices.
However, Farmer Terry is a dear friend of Farmer Olaf,
and was never able to thank him properly for pulling his wagon out of the ditch.
So he bid $500 on 1 cow, but declined to take possession of the cow.
That bid did not affect the awarding of the cows to the other high-bidders,
but it was a legitimate bid, and the $500 was duly remitted.

Farmer Olaf raised $1200:
$200 (Ryan) + $180 (Jeff) + $70 (Rick) + $50 (Craig) + $200 (Joshua) + $500 (Terry)

Moral of the story:
Bid high, Bid often.
If you want to donate, bid on 1, but check the right box at the bottom of the bid form.

Questions? Confused? Talk to Joshua.