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An American auctioneer at a livestock auction, November 2010 An auction is a process of or by offering them up for, taking bids, and then selling the item to the highest bidder. The open ascending price auction is arguably the most common form of auction in use today. Participants bid openly against one another, with each subsequent bid required to be higher than the previous bid. An auctioneer may announce prices, bidders may call out their bids themselves (or have a proxy call out a bid on their behalf), or bids may be submitted electronically with the highest current bid publicly displayed. In a, the auctioneer begins with a high asking price for some quantity of like items; the price is lowered until a participant is willing to accept the auctioneer's price for some quantity of the goods in the lot or until the seller's reserve price is met.

While auctions are most associated in the public imagination with the sale of, paintings, rare and expensive, auctions are also used for,, and. In, an auction may refer to any mechanism or set of trading rules for exchange. Ancient Greek marble sculpture. In 2007, a of ' was sold at in New York for 28.6 million, by far exceeding its estimates and at the time setting the new record as as well as work from antiquity ever sold at auction.

The word 'auction' is derived from the Latin which means 'I increase' or 'I augment'. For most of history, auctions have been a relatively uncommon way to negotiate the exchange of goods and commodities. In practice, both and sale by set-price have been significantly more common.

Indeed, before the seventeenth century the few auctions that were held were sporadic. Nonetheless, auctions have a long history, having been recorded as early as 500 B.C.

According to Herodotus, in auctions of women for were held annually. The auctions began with the woman the auctioneer considered to be the most beautiful and progressed to the least. It was considered illegal to allow a daughter to be sold outside of the auction method. During the, following military victory, Roman soldiers would often drive a spear into the ground around which the spoils of war were left, to be auctioned off. Later slaves, often captured as the 'spoils of war', were auctioned in the forum under the sign of the spear, with the proceeds of sale going towards the war effort. The Romans also used auctions to the assets of debtors whose property had been confiscated. For example, sold household furniture to pay off debts, the sales lasting for months.

One of the most significant historical auctions occurred in the year 193 A.D. When the entire Roman Empire was put on the auction block by the. On March 23 The Praetorian Guard first killed emperor, then offered the empire to the highest bidder. Outbid everyone else for the price of 6,250 per guard, [ ] an act that initiated a brief civil war. Didius was then two months later when conquered Rome. From the end of the Roman Empire to the eighteenth century auctions lost favor in Europe, while they had never been widespread in Asia. Modern revival [ ].

A Peep at Christies (1796) – caricature of actress and huntsman examining paintings at Christie's, by In some parts of England during the seventeenth and eighteenth centuries began to be used for the sale of goods and leaseholds. In a candle auction, the end of the auction was signaled by the expiration of a flame, which was intended to ensure that no one could know exactly when the auction would end and make a last-second bid. Sometimes, other unpredictable processes, such as a, were used in place of the expiration of a candle.

This type of auction was first mentioned in 1641 in the records of the House of Lords. The practice rapidly became popular, and in 1660 's diary recorded two occasions when the sold surplus ships 'by an inch of candle'. Radha Hi Bavari Serial Actress Name. Pepys also relates a hint from a highly successful bidder, who had observed that, just before expiring, a candle-wick always flares up slightly: on seeing this, he would shout his final - and winning - bid.

The began reporting on the auctioning of artwork at the and of London in the late 17th century. This section possibly contains. Please by the claims made and adding. Statements consisting only of original research should be removed. (September 2016) () • Government, bankruptcy and general auctions are amongst the most common auctions to be found today.

A government auction is simply an auction held on behalf of a government body generally at a general sale. Here one may find a vast range of materials that have to be sold by various government bodies, for example: HM Customs & Excise, the Official Receiver, the Ministry of Defence, local councils and authorities, liquidators, as well as material put up for auction by companies and members of the public.

Also in this group you will find auctions ordered by executors who are entering the assets of individuals who have perhaps died in testate (those who have died without leaving a will), or in debt. One of the most interesting bodies to look out for at auction is HM Customs & Excise who may be entering at auction various items seized from smugglers, fraudsters and racketeers. • Motor vehicle and car auctions – Here one can buy anything from an accident-damaged car to a brand new top-of-the-range model; from a run-of-the-mill family saloon to a rare collector's item. • are generally held at general auctions although some forces use online sites including eBay to dispose of lost and found and seized goods.

• Land and property auctions – Here one can buy anything from an ancient castle to a brand new commercial premises. • Antiques and collectibles auctions hold the opportunity for viewing a huge array of items. • Internet auctions – With a potential audience of millions the Internet is the most exciting part of the auction world at the moment. Led by sites in the United States but closely followed by UK auction houses, specialist Internet auctions are springing up all over the place, selling everything from antiques and collectibles to holidays, air travel, brand new computers, and household equipment. • Titles – One can buy a manorial title at auction. Every year several of these specialist auctions take place. However, it is important to note that manorial titles are not the same thing as, and have been described as 'meaningless' in the modern world.

• Insurance policies – Auctions are held for second-hand endowment policies. The attraction is that someone else has already paid substantially to set up the policy in the first place, and one will be able (with the help of a financial calculator) to calculate its real worth and decide whether it is worth taking on. • On-site auctions – Sometimes when the stock or assets of a company are simply too vast or too bulky for an auction house to transport to their own premises and store, they will hold an auction within the confines of the bankrupt company itself. Bidders could find themselves bidding for items which are still plugged in, and the great advantage of these auctions taking place on the premises is that they have the opportunity to view the goods as they were being used, and may be able to try them out. Bidders can also avoid the possibility of goods being damaged whilst they are being removed as they can do it or at least supervise the activity. • Private treaty sales – Occasionally, when looking at an auction catalogue some of the items have been withdrawn. Usually these goods have been sold by 'private treaty'.

This means that the goods have already been sold off, usually to a trader or dealer on a private, behind-the-scenes basis before they have had a chance to be offered at the auction sale. These goods are rarely in single lots – photocopiers or fax machines would generally be sold in bulk lots. • Charity auctions - Used by nonprofits, higher education, and religious institutions as a method to raise funds for a specific mission or cause both through the act of bidding itself, and by encouraging participants to support the cause and make personal donations.

Often, these auctions are linked with another charity event like a. Time requirements [ ]. This section does not any.

Unsourced material may be challenged and. (June 2008) () Each type of auction has its specific qualities such as pricing accuracy and time required for preparing and conducting the auction. The number of simultaneous bidders is of critical importance. Open bidding during an extended period of time with many bidders will result in a final bid that is very close to the true market value. Where there are few bidders and each bidder is allowed only one bid, time is saved, but the winning bid may not reflect the true market value with any degree of accuracy. Of special interest and importance during the actual auction is the time elapsed from the moment that the first bid is revealed to the moment that the final (winning) bid has become a binding agreement. Characteristics [ ].

This section does not any. Unsourced material may be challenged and. Download The Amazing Spider Man 2 Pc Torrent here. (June 2008) () Auctions can differ in the number of participants: • In a supply (or reverse) auction, m sellers offer a good that a buyer requests • In a demand auction, n buyers bid for a good being sold • In a n buyers bid to buy goods from m sellers Prices are bid by buyers and asked (or offered) by sellers. Auctions may also differ by the procedure for bidding (or asking, as the case may be): • In an open auction participants may repeatedly bid and are aware of each other's previous bids. • In a closed auction buyers and/or sellers submit sealed bids Auctions may differ as to the price at which the item is sold, whether the first (best) price, the second price, the first unique price or some other.

Auctions may set a which is the least/maximum acceptable price for which a good may be sold/bought. Without modification, auction generally refers to an open, demand auction, with or without a (or reserve), with the item sold to the highest bidder. Wool buyers' room at a wool auction, Newcastle, NSW • The business, where besides being an opportunity for they also serve as social occasions and entertainment • In the sale of such as stamps, coins, vintage toys & trains, classic cars, fine art and • The business, where serious collectors can gain access to rare bottles and mature vintages, not typically available through retail channels • In the sale of all types of including residential and commercial, farms, vacant lots and land; this is the method used on. • For the sale of consumer of all kinds, particularly farm (equipment) and house clearances and online auctions. • Sale of industrial machinery, both surplus or through insolvency. • In auctions, like the fish wholesale auctions • In auctions where sheep, cattle, pigs and other livestock are sold.

Sometimes very large numbers of stock are auctioned, such as the regular sales of 50,000 or more sheep during a day in. • In auctions where international agents purchase lots of wool • horses, where yearling horses and other bloodstock are auctioned. • In legal contexts where auctions occur, as when one's farm or house is sold at auction on the steps. (Property seized for non-payment of, or under, is sold in this manner.) • Travel tickets. One example is in Sweden auctioning surplus at Tradera (Swedish eBay).

A variety of holidays are available for sale online particularly via eBay. Vacation rentals appear to be most common. Many holiday auction websites have launched but failed. In certain jurisdictions, if a storage facility's tenant fails to pay his/her rent, the contents of his/her locker(s) may be sold at a public auction. Several television shows focus on such auctions, including and.

Although less publicly visible, the most economically important auctions are the commodities auctions in which the bidders are even up to level. An 18th century Chinese meiping porcelain vase. Has long been a staple. In 2005, a 14th-century Chinese porcelain piece was sold by the for 16 million, or US28 million. It set a world auction record for any ceramic work of art.

And Puranam provided the first model for the problem of optimal bidding for a firm that in each period procures items to meet a random demand by participating in a finite sequence of auctions. In this model an item valuation derives from the sale of the acquired items via their demand distribution, sale price, acquisition cost, salvage value and lost sales. They established monotonicity properties for the value function and the optimal dynamic bid policy. They also provided a model for the case in which the buyer must acquire a fixed number of items either at a fixed buy-it-now price in the open market or by participating in a sequence of auctions. The objective of the buyer is to minimize his expected total cost for acquiring the fixed number of items. Bid shading [ ] is placing a bid which is below the bidder's actual value for the item.

Such a strategy risks losing the auction, but has the possibility of winning at a low price. Bid shading can also be a strategy to avoid the.

Chandelier or rafter bidding [ ] This is the practice, especially by high-end art auctioneers, of raising false bids at crucial times in the bidding in order to create the appearance of greater demand or to extend bidding momentum for a work on offer. To call out these nonexistent bids auctioneers might fix their gaze at a point in the auction room that is difficult for the audience to pin down. The practice is frowned upon in the industry. In the United States, chandelier bidding is not illegal. In fact, an auctioneer may bid up the price of an item to the reserve price, which is an unstated amount the consignor will not sell the item for. However, the auction house is required to disclose this information. In the this practice is legal on property auctions up to but not including the reserve price, and is also known as off-the-wall bidding.

Collusion [ ]. This section does not any. Unsourced material may be challenged and.

(March 2009) () Whenever bidders at an auction are aware of the identity of the other bidders there is a risk that they will form a 'ring' or 'pool' and thus manipulate the auction result, a practice known as. By agreeing to bid only against outsiders, never against members of the 'ring', competition becomes weaker, which may dramatically affect the final price level. After the end of the official auction an unofficial auction may take place among the 'ring' members. The difference in price between the two auctions could then be split among the members. This form of a ring was used as a central plot device in the opening episode of the 1979 British television series The House of Caradus, 'For Love or Money', uncovered by Helena Caradus on her return from Paris.

A ring can also be used to increase the price of an auction lot, in which the owner of the object being auctioned may increase competition by taking part in the bidding him or herself, but drop out of the bidding just before the final bid. In Britain and many other countries, rings and other forms of bidding on one's own object are illegal. This form of a ring was used as a central plot device in an episode of the British television series (series 4, episode 3), in which the price of a watercolour by the (fictional) Jessie Webb is inflated so that others by the same artist could be sold for more than their purchase price.

In an English auction, a dummy bid is a bid made by a dummy bidder acting in collusion with the auctioneer or vendor, designed to deceive genuine bidders into paying more. In a first-price auction, a dummy bid is an unfavourable bid designed so as not to become the winning bid. (The bidder does not want to win this auction, but he or she wants to make sure to be invited to the next auction). In Australia, a dummy bid (, schill) is a criminal offence, but a vendor bid or a co-owner bid below the is permitted, if clearly declared as such by the auctioneer.

These are all official legal terms in Australia, but may have other meanings elsewhere. A co-owner is one of two or several owners (who disagree among themselves). In Sweden and many other countries there are no legal restrictions, but it will severely hurt the reputation of an auction house that knowingly permits any other bids except genuine bids.

If the reserve is not reached this should be clearly declared. In South Africa auctioneers can use their staff or any bidder to raise the price as long as its disclosed before the auction sale. The Auction Alliance controversy focused on vendor bidding and it was proven to be legal and acceptable in terms of the South African consumer laws. Suggested opening bid (SOB) [ ].

This section does not any. Unsourced material may be challenged and. (May 2014) () There will usually be an estimate of what price the lot will fetch.

In an ascending open auction it is considered important to get at least a 50-percent increase in the bids from start to finish. To accomplish this, the auctioneer must start the auction by announcing a suggested opening bid (SOB) that is low enough to be immediately accepted by one of the bidders.

Once there is an opening bid, there will quickly be several other, higher bids submitted. Experienced auctioneers will often select an SOB that is about 45 percent of the (lowest) estimate. Thus there is a certain margin of safety to ensure that there will indeed be a lively auction with many bids submitted.

Several observations indicate that the lower the SOB, the higher the final winning bid. This is due to the increase in the number of bidders attracted by the low SOB. A shows many low bids but few high bids.

Bids 'show up together'; without several low bids there will not be any high bids. Another approach to choosing an SOB: The auctioneer may achieve good success by asking the expected final sales price for the item, as this method suggests to the potential buyers the item's particular value. For instance, say an auctioneer is about to sell a $1,000 car at a sale. Instead of asking $100, hoping to entice wide interest (for who wouldn't want a $1,000 car for $100?), the auctioneer may suggest an opening bid of $1,000; although the first bidder may begin bidding at a mere $100, the final bid may more likely approach $1,000. Terminology [ ]. Duo Yun Xuan auction house in, • – an estimate of an item's worth, usually performed by an expert in that particular field.

• Auction block - a raised platform on which the auctioneer shows the items to be auctioned; can also be slang for the auction itself. • - a rhythmic repetition of numbers and 'filler words' spoken by an auctioneer in the process of conducting an auction. • Auction fever - an emotional state elicited in the course of one or more auctions that causes a bidder to deviate from an initially chosen bidding strategy. • Auction house - the company operating the auction (i.e., establishing the date and time of the auction, the auction rules, determining which item(s) are to be included in the auction, registering bidders, taking payments, and delivering the goods to the winning bidders). • Auctioneer - the person conducting the actual auction. They announce the rules of the auction and the item(s) being auctioned, call and acknowledging bids made, and announce the winner.

They generally will call the auction using auction chant. • The auctioneer may operate his/her own auction house (and thus perform the duties of both auctioneer and auction house), and/or work for another house. • Auctioneers are frequently regulated by governmental entities, and in those jurisdictions must meet certain criteria to be licensed (be of a certain age, have no disqualifying criminal record, attend, pass an examination, and pay a licensing fee). • Auctioneers may or may not (depending on the laws of the jurisdiction and/or the policies of the auction house) bid for their own account, or if they do must disclose this to bidders at the auction; similar rules may apply for employees of the auctioneer or the auction house.

• - the act of participating in an auction by offering to purchase an item for sale. • – a paid by the buyer to the auction house; it is typically calculated as a percentage of the winning bid and added on it. Depending on the jurisdiction the buyer's premium, in addition to the sales price, may be subject to. • Buyout price – A price that, if accepted by a bidder, immediately ends the auction and awards the item to him/her (an example is 's feature).

• Choice - a form of bidding whereby a number of identical or similar items are bid at a single price for each item • Clearance rate – The percentage of items that sell over the course of the auction. • – a fee paid by a consignor/seller to the auction house; it is typically calculated as a percentage of the winning bid and deducted from the gross proceeds due to the consignor/seller. • Consignee and consignor - as pertaining to auctions, the consignor (also called the seller, and in some contexts the vendor) is the person owning the item to be auctioned or the owner's representative, while the consignee is the auction house. The consignor maintains title until such time that an item is purchased by a bidder and the bidder pays the auction house. • Dummy bid (a/k/a 'ghost bid') - a false bid, made by someone in collusion with the seller or auctioneer, designed to create a sense of increased interest in the item (and, thus, increased bids). • Dynamic closing - a mechanism used to prevent, by which the closing time is extended for a small period to allow other bidders to increase their bids.

• – electronic bidding, whereby a person may make a bid without being physically present at an auction (or where the entire auction is taking place on the Internet). • Earnest money deposit (a/k/a 'caution money deposit' or 'registration deposit') – a payment that must be made by prospective bidders ahead of time in order to participate in an auction. • The purpose of this deposit is to deter non-serious bidders from attending the auction; by requiring the deposit, only bidders with a genuine interest in the item(s) being sold will participate. • This type of deposit is most often used in auctions involving high-value goods (such as ). • The winning bidder has his/her earnest money applied toward the final selling price; the non-winners have theirs refunded to them. • – an arrangement in which the winning bidder pays the amount of his/her bid to a third party, who in turn releases the funds to the seller under agreed-upon terms.

• Hammer price – the nominal price at which a lot is sold; the winner is responsible for paying any additional fees and taxes on top of this amount • – a minimum amount by which a new bid must exceed the previous bid. An auctioneer may decrease the increment when it appears that bidding on an item may stop, so as to get a higher hammer price.

Alternatively, a participant may offer a bid at a smaller increment, which the auctioneer has the discretion to accept or reject. • Lot – either a single item being sold, or a group of items (which may or may not be similar or identical, such as a 'job lot' of manufactured goods) that are bid on as one unit. • If the lot is for a group of items, the price paid is for the entire lot and the winning bidder must take all the items sold. • Variants on a group lot bid include 'choice' and 'times the money' (see definitions for each). • Example: An auction has five bath fragrance gift baskets where bidding is 'lot', and the hammer price is USD $5. The winner must pay $5 (as the price is for the whole lot) and must take all five baskets.

• Minimum bid – The smallest opening bid that will be accepted. • A minimum bid can be as little as USD$0.01 (one cent) depending on the auction. • If no one bids at the initial minimum bid, the auctioneer may lower the minimum bid so as to create interest in the item. • The minimum bid differs from a reserve price (see definition), in that the auctioneer sets the minimum bid, while the seller sets the reserve price (if desired). • 'New money' - a new bidder, joining bidding for an item after others have bid against each other.

• No reserve auction (a/k/a 'absolute auction') – an auction in which there is no minimum acceptable price; so long as the winning bid is at least the minimum bid, the seller must honor the sale. • Outbid (also spelled 'out-bid' or 'out bid') – to bid higher than another bidder. • Opening bid – the first bid placed on a particular lot. The opening bid must be at least the minimum bid, but may be higher (e.g., a bidder may shout out a considerably larger bid than minimum, to discourage other bidders from bidding). • Paddle - a numbered instrument used to place a bid • Protecting a Market - when a dealer places a bid on behalf of an artist he or she represents or otherwise has a financial interest in ensuring a high price. Artists represented by major galleries typically expect this kind of protection from their dealers. • Proxy bid (a/k/a 'absentee bid') – a bid placed by an authorized representative of a bidder who is not physically present at the auction.

• Proxy bids are common in auctions of high-end items, such as (where the proxy represents either a private bidder who does not want to be disclosed to the public, or a museum bidding on a particular item for its collection). • If the proxy is outbid on an item during the auction, the proxy (depending on the instructions of the bidder) may either increase the bid (up to a set amount established by the bidder) or be required to drop out of the bidding for that item. • A proxy may also be limited by the bidder in the total amount to spend on items in a multi-item auction. • Relisting - re-selling an item that has already been sold at auction, but where the buyer did not take possession of the item (for example, in a real estate auction, the buyer did not provide payment by the closing date). • Reserve price – A minimum acceptable price established by the seller prior to the auction, which may or may not be disclosed to the bidders.

• If the winning bid is below the reserve price, the seller has the right to reject the bid and withdraw the item(s) being auctioned. • The reserve price differs from a minimum bid (see definition), in that the seller sets the reserve price (if desired), while the auctioneer sets the minimum bid. • Sealed bid - a submitted bid whose value is unknown to competitors. • – the act of placing a bid just before the end of a timed auction, thus giving other bidders no time to enter new bids.

• Specialist - on-staff trained professionals who put together the auction • The 'three Ds' death, divorce, or debt - sometimes a reason for an item to be sold at an auction • Vendor bid - a bid by the person selling the item. The bid is sometimes a dummy bid (see definition) but not always. • White Glove Sale - an auction in which every single lot is sold JEL classification [ ] The (JEL) for auctions is D44.

See also [ ] • Types of auction: • • • • • • • • • Other topics: • • • • • • • •, a game in which auctions are sometimes used • • • • • Notes [ ].