auction


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Auction

1. A way to sell an item in which a moderator takes bids from a number of persons for a period of time and ultimately sells to the highest bidder. For example, the moderator (called an auctioneer) may set the opening bid at $5 and, once someone offers to pay $5, may incrementally increase the requested bids until they stop. Variations on an auction may involve any number of things; for example, a person with more than one job offer may request higher salaries in turn and then finally take the highest paying position. See also: Bidding war.

2. See: Auction market.

auction

a means of selling goods and services to the highest bidder among a number of potential customers. Auctions can take several forms. One form is an open auction – increasing bid – competition in which the bids of all parties are observable and bidders drop out as the price increases until only the highest bidder remains. Another form is an open auction -decreasing price – auction in which the auctioneer starts off from a very high price that is then slowly decreased until one bidder agrees to buy at the last announced price. This form of auction is often called ‘Dutch auction’. Yet another form is a sealed-bid, closed auction in which all bidders have to submit their bids in sealed envelopes at the same time. In open auctions, bidders can gain some information about the private valuations that other bidders place upon the goods to be sold, while in sealed-bid auctions the private valuations of bidders remain unobservable.

The principles of auctions apply to situations where firms seek TENDER to supply products.

auction

a means of selling goods and services to the highest bidder among a number of potential customers. Auctions can take several forms. One form is an open auction, increasing bid, competition in which the bids of all parties are observable and bidders drop out as the price increases until only the highest bidder remains. Another form is an open auction, decreasing price, auction in which the auctioneer starts off from a very high price that is then slowly decreased until one bidder agrees to buy at the last announced price. This form of auction is often called a ‘Dutch auction’. Yet another form is a sealed-bid, closed auction in which all bidders have to submit their bids in sealed envelopes at the same time. In open auctions, bidders can gain some information about the private valuations that other bidders place upon the goods to be sold, while in sealed-bid auctions the private valuations of bidders remain unobservable. The principles of auctions apply to situations where firms seek tenders to supply products.

auction

A sales technique in which real or personal property is offered for sale and bidders make oral offers in varying amounts until one is accepted. Frequently used for involuntary transfers of real estate, such as foreclosures and tax sales. In some states, foreclosure auctioneers must be licensed.Where property is offered by the owner voluntarily for auction sale,the fine print in the auction terms usually contains a provision for a buyer's premium. The amount of the winning bid is automatically increased by the stated amount, and that percentage is used to pay the auctioneer's fees.

References in periodicals archive ?
An informed broker can leverage the fact that he can offer the auction service and knows that in certain situations auction firms such as Express Auction can truly hit a home run for their client.
He also posted a link to the auction on his Weblog (http://williamtozier.
Potential buyers work through a real-estate broker who arranges for viewing prospective homes before the auction.
The auction of a unique work of art not for resale is the prototypical private-values model, whereas a Treasury auction--with each bidder guessing at the security's value at the end of the day--is an example of a common-values model.
Westchester Auctions, the Land Marketing Authority, along with Schrader Auctions, has long been known for using its innovative land marketing and auctioning techniques to bring the highest return to large land sellers.
In the New York area, Express Auction has worked with several brokerage firms, including Besen & Associates and Massey Knakal.
They have set world records for both the first gold coin, a $20 gold 1907, to realize over one million dollars at public auction, as well as participating in the group that purchased the largest numismatic purchase of all time, the S.
When these two criteria are satisfied, achieving market value through the auction process can yield dramatic results.
This March sale is projected to be the largest sale we have ever done, and will be our first four day auction in our 34 year history," says company president Brenda Wood.
California led the nation in auction activity with 63.
AMEX:AAC) is a high-tech liquidator and on-line auction facilitator that operates the domains iCollector.
Crucial for any good auction company is the ability to put potential bidders at ease.