Chinese auction is a type of the all-pay auction, where the probability of winning depends on the relative size of a participant's bid.[
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It is also known as penny raffle, chance auction and tricky tray.
Etymology
The origin of the name is unknown[ but is thought to originated from the 19th Century when the term "Chinese" came to be used to mean cheap and described the inexpensive cost of the raffle and prizes.]
There is no connection to Chinese culture.
Significance
Chinese auctions are usually conducted during charity events for fundraising.
Controversy
Some sources consider the term "chinese auction" as derogatory.
