| You've read about them, you've heard
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| | however, that there are four major
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| about them, you've probably participated
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| | one-sided auction formats: English,
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| in one. But what exactly are auctions?
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| | Dutch, First-Price sealed-bid, and
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| Isn't it just the simple method of
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| | Vickrey (uniform second-price).
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| selling an object to interested people
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| | You may ask which type of auction is the
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| who bid until the highest bidder gets it?
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| | best. It actually depends on the
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| That is definitely the scenario in most
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| | perspective of both the seller and the
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| auctions. But auctions are actually more
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| | buyer. Some auction types lessen room for
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| complex than people realize. Do you know
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| | cheating while others seem to actually
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| that not all auctions have ascending
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| | encourage such. Some auctions require the
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| price schemes? While the ascending bid is
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| | presence of the buyer while some do not.
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| the most popular auction format, other
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| | Before an auction is set, the seller must
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| formats exist such as the descending,
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| | first analyze the auction format that
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| simultaneous and handshake forms of
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| | would best benefit him. An aspect of
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| bidding.
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| | auctioning that is sometimes very vital
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| An auction, in general terms, is the
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| | is speed. If the item you are selling
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| method of allocating scarce goods. It is
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| | perishes quickly, like flowers or fish,
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| a unique selling method that is based on
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| | of course a quick auction is required.
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| competition. Truly, the objectives are
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| | While it has its' advantages, an auction
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| simple: the seller wants to obtain the
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| | also has drawbacks, like the so-called
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| most money for his item while the buyers
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| | "winner's curse". This is the phenomenon
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| want to purchase it at their own desired
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| | when a "lucky" winner pays more for an
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| prices. Everything can be sold in
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| | item than it is worth. These winners
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| auctions - from singular items like
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| | realize that their valuation of an object
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| paintings to multiple units of a
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| | is higher than that of anyone else.
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| homogenous item such as treasury
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| | In this age of modern technology,
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| securities. Auctions are most useful when
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| | auctions have found a place where it can
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| a seller is unsure of the price his item
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| | thrive and reach more prospective buyers:
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| can get, or when selling a commodity with
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| | the Internet. Online auctions are
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| undeterminable quality.
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| | becoming more popular each day as buyers
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| Some unique things about auctions: the
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| | can browse through the products and bid
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| price of an item is set by the bidders
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| | at their own time and pace. Furthermore,
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| and not by the seller. Also, the
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| | the range of products people auction
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| auctioneer doesn't own the goods but
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| | online is endless and intriguing - you
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| rather acts as an agent for the real
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| | could spend hours just browsing.
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| owner. Lastly, buyers often know the
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| | All in all, auctions are a pure
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| value of an item more than the seller.
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| | marketplace at work in its finest form.
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| Various classifications of auctions
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| | So if you're planning to sell something,
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| exist. There are open auctions and
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| | you might consider auctioning it. Just
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| sealed-bid auctions. There are auctions
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| | look at it from this perspective: your
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| wherein the price simple ascends and
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| | clutter is other people's treasure. And
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| there are auctions where the price drops
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| | they're going to compete to get it.
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| at regular intervals. Experts agree,
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