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Chinese auction. A Chinese auction is a combination of a raffle and an auction that is typically featured at charity, church festival and numerous other events. Can also be known as penny social, penny sale, tricky tray or pick-a-prize according to local custom, or to avoid causing offense.
There are traditionally four types of auction that are used for the allocation of a single item: 1  English auction, also known as an open ascending price auction. This type of auction is arguably the most common form of auction in use today. 2  Dutch auction also known as an open descending price auction.