Chinese auction is a type of the all-pay auction, where the probability of winning depends on the relative size of a participant's bid. The choice of the winner is done by a lottery, whereby the bidders compete for a higher chance of winning.
Etymology
The origin of the name is unknown There is no connection to Chinese culture. ==Significance==
Significance
Chinese auctions are usually conducted during charity events for fundraising. Political elections and patent races can be modeled as Chinese auctions, in which the chance of winning is seen as proportional to the amount spent. ==Controversy==
Controversy
Some sources consider the term "chinese auction" as derogatory. ==References==