A reverse auction is a type of auction where the roles of buyers and sellers are reversed. Instead of bidders competing to offer the highest price for an item, sellers compete to offer the lowest price for their goods or services. This process is often used in procurement, allowing organizations to obtain products or services at the best possible price. In a reverse auction, buyers typically set a minimum price and invite multiple sellers to submit their bids. As sellers lower their prices, the auction continues for a specified time, encouraging competition. This method can lead to significant cost savings for buyers, making it a popular choice in industries like construction and government procurement.