PEMs are a hybrid between perfectly open markets (e.g. exchanges where there is no pre-existing relationship between buyer and seller - similar to eBay) and closed contract negotiations (such as a sealed bid tender, where there is no visibility between competitors and hence no response to competition).
VicForests, a government-owned agency in Australia, conducts bidding for native timber supply via a website called Forest Auctions.
Compared to the traditional sealed bid tender approach, the use of this private market reportedly resulted in a substantial revenue increase for VicForests.
[citation needed] Swiss online auction site Firstpex allows qualified investors to buy and sell private equities to each other through a bidding process.
[1][2] The overall effect of a well designed Private Electronic Market is what is described as allocative efficiency or in simple terms: a win-win for the seller (who maximizes revenue) and buyers (acquiring exactly what is of highest value to them).