<p>Suppose there is an auction for a unique good, say an original piece of artwork.  There are many potential buyers, including buyer X.  Each buyer has a unique reserve price, or willingness to pay.  If X's reserve price is the highest, then X wins the auction.  If X's reserve is not the highest, then X loses the auction.</p>
<p>Whether X wins or loses the auction depends on the <em>maximum willingness to pay of all other buyers</em>.  Is there a standard name for this quantity in economics?</p>

CC BY-SA 4.0
2022-03-31T03:59:44.360Z
The *highest competing bid* to X's?
Herr K.
CC BY-SA 4.0
2022-03-31T14:12:20.980Z
@HerrK. I like the 'competing' part, but it's not quite actually an auction bid that I'm trying to get after.  It's the reserve price, which a buyer may or may not actually bid during the auction.  I suppose 'highest competing reserve' might work.
ivme
<economic-terms>
Name for the maximum willingness to pay of other market participants
ivme
# Name for the maximum willingness to pay of other market participants

(Asked by: username_0 on 2022-03-30)

Suppose there is an auction for a unique good, say an original piece of artwork. There are many potential buyers, including buyer X. Each buyer has a unique reserve price, or willingness to pay. If X's reserve price is the highest, then X wins the auction. If X's reserve is not the highest, then X loses the auction.

Whether X wins or loses the auction depends on the *maximum willingness to pay of all other buyers*. Is there a standard name for this quantity in economics?

**Tags:** economic-terms
> **Comments:**
> **username_1**: The *highest competing bid* to X's?  
> **username_0**: @HerrK. I like the 'competing' part, but it's not quite actually an auction bid that I'm trying to get after.  It's the reserve price, which a buyer may or may not actually bid during the auction.  I suppose 'highest competing reserve' might work.  

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## 0 answers

