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Articles / What is an Auction?
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What is an Auction? |
| By: admin, November 25, 2004 |
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| Views: 468 |
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An auction is the process of buying and selling things by offering them
up for bid, taking bids, and then selling the item to the highest
bidder. In economic theory an auction is a method for determining the
value of a commodity that has an undetermined or variable price. In
some cases, there is a minimum or reserve price; if the bidding does
not reach the minimum, there is no sale (but the person who puts the
item up for auction still owes a fee to the auctioneer). In the context
of auctions, a bid is an offered price.
Auctions are publicly seen in several contexts: in the antique
business, where besides being an opportunity for trade they also serve
as social occasions and entertainment; in the sale of collectibles such
as stamps, coins, classic cars, and fine art; in thoroughbred
horseracing, where yearling horses are commonly auctioned off; and in
legal contexts where forced auctions occur, as when one's farm or house
is sold at auction on the courthouse steps.
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