Which auction format allows bidders to potentially pay less than the listed value?

The tender auction format allows bidders the opportunity to submit their offers confidentially, usually resulting in competitive pricing. In a tender auction, participants provide their bids without knowing others' proposals, which can result in bidders offering less than the listed value to increase their chances of winning the item. This format encourages strategic bidding and can lead to lower sale prices because bidders may place value on different aspects of what they are bidding on, leading to more aggressive pricing.

In contrast, the English auction typically involves open ascending bids, where participants openly compete, which can drive the price up to or even above the listed value. The Dutch auction starts with a high price that is lowered until a bid is made, generally resulting in a sale close to the perceived value but not necessarily under it. A timed auction is simply a fixed period in which bids can be placed, and while it provides a set time frame, it does not inherently encourage lower bids in the same way.