Auctions

Auction Systems

auction can be define as the selling of goods and services in a public forum through an open and competitive bidding. it can also be define as a place where things are put on sale and buy by bidding. the emergence of the internet contribute greatly to the develpment of auctions and auction systems. the internet has become the global place or market where sellers or auctioneers can sell, and where buyers or bidders can bids and buy goods from any part of the globe with ease. system refers to an organised set of ideas or theories or a particular way of doing something. auction systems therefore, refers to the particular ways of selling goods and services in a public forum, event or place through a competitive biddings.

there are two primary types of auction systems. an auction system in which the buyer compete for product or services on sale, and the other, an auction system in which sellers compete to obtain business.

the auction system in which buyers compete by bidding to obtain goods or services on sale, is further divided into more auction types. the major ones includes the English auction system, Dutch auction system, Chinese auction system. each of these auction systems have it unique way of auctioning products in the public place.

in the Dutch auction system, which is one of the auction systems mentioned above, the auctioneer start auctioning first with a price that is set high, which is then reduce gradually until a bidder is willing to pay the auctioneer's price or a predetermined minimum price is reached. any bidder that reach this auctioneer's predetermined price win to pay for the product bid for.

another one of the auction systems is the English auction system, which allow bidders to bid to their choice. this system set no higher price for the item on sale. the final price is determined by the highest bidder. items auctioned in this way are left until bidders are not any more willing to bid further or higher on that item(s). this type of auction is more often use than the others.

a good type of auction systems in which sellers compete instead of buyers to obtain business is the reverse auction system. in this case, the buyer is completey king, who may want a good or service, waiting for sellers of such good and services to bid for the amount they can offer such good or services to the buyer. the buyer then choose the minimum, moderate or maximum bid left by the different sellers, depending on the buyer's demand, and offer to pay the winning seller who bids to the buyer's taste. it may be best for contractors, business-to-business, between companies et cetera, it can as well be use by individual-to-company transactions.

other auction or auction systems terminologies includes: All-pay auction, seal-bid first price auction, seal-bid second price auction, open cry auction, silent auction, buy-out auction, absolute auction et cetera.

however, whichever systems of auctioning used, the aim is to have your good or products sold (for sellers), and to have your goods or services bought (for buyers). all of the auction systems involves bidding.

Article Published: Wednesday 14th November 2007