In which business model do consumers place bids for products and services?

The business model where consumers place bids for products and services is known as Consumer-to-Consumer (C2C). In this model, individuals sell goods or services to other individuals, often facilitated by third-party platforms or websites. Auctions are a prime example of how this model operates, where consumers can bid on items, and the highest bidder wins the product or service. This type of interaction fosters a marketplace where consumers can directly engage with each other, setting their own prices through competitive bidding.

This model stands out in the digital economy, exemplified by platforms like eBay, where users can create listings and other users can make bids, thus determining the final selling price based on demand and willingness to pay. In contrast, other models like Business-to-Consumer (B2C) or Business-to-Business (B2B) involve transactions where a business sells directly to consumers or other businesses, respectively, without the competitive bidding aspect intrinsic to C2C environments.