The sealed bid model of auctions is ideally suited for electronic auction systems, as they avoid the requirement for real-time
communications between various entities. A sealed bid auction scheme designed by Kikuchi, Harkavy and Tygar is analysed. Several
shortcomings are identified in this scheme including the lack of public verifiability and the possibility of collusion between
bidders and/or auctioneers. A new scheme is designed to overcome these shortcomings.