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 ?
The field on Enfield Chase, which could be used for a new register office, is being sold off to the highest bidder and it is likely that the social club that presently leases Providence is to be relocated there.
The Evening Telegraph cannot otherwise accept responsibility for failing to contact the highest bidder within that time period.
But on the other hand in National Fibre the employees bid was rejected to give the project to the highest bidder.
Reports said that the second highest bidder, the consortium of local real estate firm Filinvest and Singapore-based Changi Airports International, had questioned the qualification of the Megawide-GMR consortium to do the Cebu project because of "conflict of interest.
31 crore at the Commonwealth Games Village on Monday, becoming the highest bidder as the Delhi Development Authority ( DDA) sold 87 flats in an auction.
As part of a charity auction, the highest bidder will have the "opportunity" to shave Richard Branson's legs at Stansted airport, London, after he unveils his AirAsia flight attendant uniform.
Johansson, who plays Black Widow in the Iron Man sequel, will honour the highest bidder of the eBay.
She has put an original unpublished manuscript up for grabs to the highest bidder in the hope of raising cash for Guide Dogs for the Blind.
Jeff Troy produced the highest bidder for the sale.
GMR Infrastructure consortium declared as highest bidder for airport project in PHILIPPINES