Auction

This tactic is supposed to be used only when you have an upper hand. If a weak party calls for an action then it is likely that the reserve price is not reached and you will be screwed/have to call for an re-auction.
You call in multiple buyers/seller together, then explain them clearly your proposal and pitch then what are the likely benefit etc . And them ask them to outbid each other.
Normally people are competitive and in the heat of the moment loose tract of the difference between object and desire. In such a scenario there is a high likelihood that the sight of loosing onto this coveted object makes the party to enter into a pyrrhic war. (quote a price which is way beyond what the party can afford)
This tendency is often more seen in case of a Dutch Auction. Where the buyer has to pay not the price he/she quotes but the next best offer. Hence there is an incentive to quote higher price. No wonder RBI these days does all its auctions via this mode.