Selling of commodities by placing them up for bidding is referred to as auctioning. Once the item is placed up for bidding, participants place their bids and the one who wins the bid carries the day. Unwillingness of participation by participants marks the end of the bidding process and a winner is announced. Various types of this process are in existence today. For more information on live auction AZ should be the place to check out.
Bids in open ascending auctions are placed openly. Prices increase with each bid that is placed. The bidders may call out their bids as they place them. If this is not the case, auctioneers announce each bid as it is placed. In electronic version of the process, the last bid is often placed on display. This is to allow bidders to place higher bids in their next bids.
The term auction derives from a Latin word that translates to I increase or augment in the English language. The use of auctions has dominated a better part of the history of human beings and was relied upon as a reliable way of negotiating prices. The practice has a long history that stretches far back as the 500 BC. According to history, Babylonian women were auctioned for marriage and it was illegal to marry a daughter outside the auctions method.
Sealed first-price, Dutch, English, and Vickrey are the main types of auctions in existence today. Another name used for the English auctions is open ascending price auctions. Of all the other three, it is the most commonly practiced way of auctioning. Bids are open, announced, and are made in an ascending order like the name suggests. The bidding process is concluded and the item sold when not more people are willing to continue placing bids.
A minimum price for the goods may be set by the auctioneer. The item will usually remain unsold if the minimum price set if not reached by bidders. What places this method of bidding apart from others is that the last or highest price is often made available to participants. In most cases, artwork and antiques are the ones sold through this method.
The Dutch auctioning method is also referred to as open descending price auction. In this kind of auctioning, the auctioneer starts by asking a high price for a certain number of items and continues to lower it until the buyer is willing to pay the sum. This method is commonly used in the Netherlands to sell flowers and other perishable products such as tobacco and fish. The use of this method is not very wide as the English auction.
First-price sealed-bid auctions also called sealed first-price auctions are often abbreviated as FPSB. This method requires simultaneous submission of bids by all bidders. The auctioneers reviews the bids and sells the commodity to the highest bidder. Bids remain sealed, which means that no bidder gets a chance to see the bids placed by other bidders.
Another name for Vickrey auction is sealed-bid second-price auction. This kind of auctioning and FPSB auctioning are the same in all ways. The only distinction between the two is that winners of the bidding process pay the second-highest price instead of the highest price. This method of bidding is less commonly used in non-automated contexts.
Bids in open ascending auctions are placed openly. Prices increase with each bid that is placed. The bidders may call out their bids as they place them. If this is not the case, auctioneers announce each bid as it is placed. In electronic version of the process, the last bid is often placed on display. This is to allow bidders to place higher bids in their next bids.
The term auction derives from a Latin word that translates to I increase or augment in the English language. The use of auctions has dominated a better part of the history of human beings and was relied upon as a reliable way of negotiating prices. The practice has a long history that stretches far back as the 500 BC. According to history, Babylonian women were auctioned for marriage and it was illegal to marry a daughter outside the auctions method.
Sealed first-price, Dutch, English, and Vickrey are the main types of auctions in existence today. Another name used for the English auctions is open ascending price auctions. Of all the other three, it is the most commonly practiced way of auctioning. Bids are open, announced, and are made in an ascending order like the name suggests. The bidding process is concluded and the item sold when not more people are willing to continue placing bids.
A minimum price for the goods may be set by the auctioneer. The item will usually remain unsold if the minimum price set if not reached by bidders. What places this method of bidding apart from others is that the last or highest price is often made available to participants. In most cases, artwork and antiques are the ones sold through this method.
The Dutch auctioning method is also referred to as open descending price auction. In this kind of auctioning, the auctioneer starts by asking a high price for a certain number of items and continues to lower it until the buyer is willing to pay the sum. This method is commonly used in the Netherlands to sell flowers and other perishable products such as tobacco and fish. The use of this method is not very wide as the English auction.
First-price sealed-bid auctions also called sealed first-price auctions are often abbreviated as FPSB. This method requires simultaneous submission of bids by all bidders. The auctioneers reviews the bids and sells the commodity to the highest bidder. Bids remain sealed, which means that no bidder gets a chance to see the bids placed by other bidders.
Another name for Vickrey auction is sealed-bid second-price auction. This kind of auctioning and FPSB auctioning are the same in all ways. The only distinction between the two is that winners of the bidding process pay the second-highest price instead of the highest price. This method of bidding is less commonly used in non-automated contexts.
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