Name your own price

[3] As the Internet is continuously being developed and online marketplaces are becoming increasingly more popular, consumers have more choices in terms of product pricing.

"The economic argument is that the number of bids a consumer submits to win a product in a NYOP auction is determined by the bidder’s intention to trade off higher expected savings from haggling against the associated frictional costs".

[4] Similarly, LetYouKnow, Inc. pioneered the application of its own patented matching method[8] within confines of the reverse auction process, whereby consumers name their own price for new vehicles.

Originally, name-your-own-price sales are considered "opaque" by marketers because buyers "don't know the name of the supplier (airline, hotel or car rental company) or the schedule (with air tickets) until after" they make a nonrefundable purchase.

[9] A 2014 academic study showed that posted prices can guarantee higher profitability to service providers than the name-your-own-price mechanism.

If the named price is below the threshold, the NYOP retailer informs the user that his/her offer was too low and then the user is given the opportunity to submit an incremented offer after a certain pre-set delay period (When Priceline had the NYOP feature, it was usually a 24-hour period, unless the customer used the Priceline app, which further reduced the wait time by two hours[12]), and comparison with the internal threshold price is done again.