Auction

An auction is a venue or method for buying and selling where the sales price is not set in advance, but is determined by competition for the goods or services by and among the buyers. Auctions can take several forms, but at their heart is the competing motivation of buyers and sellers: the sellers want to realise the highest price for their goods, while buyers hope to get the goods at a bargain. Buyers make offers (called bids) for items, and the highest bidder wins the item. Tendering is a related concept where a buyer attempts to secure services at the lower price by receiving written bids. The most common type of auction, at least in the minds of most people, is the ascending price auction, but there are several others.

Types of auction

 * 1) English (open price ascending) Auction
 * 2) Dutch (open price descending) Auction
 * 3) Online Auction

Industries that use auctions as a selling method
One of the great draws of auctions, in addition to the possibility of a below-market purchase price, is that they are entertaining, whether or not one actually wins a purchase. Auctions can form one component or highlight of a larger event, or they can be the event itself. The style and nature of an auction can vary greatly depending on the types of commodities being sold. Autions range from elegant formal affairs to raucous events where the proceedings seem chaotic but nevertheless have set rules, and make perfect sense to the participants.

Industries typically offering goods for sale at auction include: