What is an Auction and How Does It Works?
Webster’s defines an auction as simply “A sale of property to the highest bidder. “The word stems from the Latin verb “auctio” which means “to increase.” Auctions are used to sell many things in addition to antiques and art. All around the world there are auctions of commodities such as tobacco, fish, cattle, racehorses, and just about anything else where there’s a market of multiple people interested in buying the same thing. That’s the key to an auction – a bunch of people who are interested in buying the same object, and taking turns offering bids on the object. The right to buy that object will go to the highest bidder. This is not the way many goods are bought and sold. If you go into the store to buy a soda, you’re the only customer at the moment and there’s a set price, a list price if you will. Shopping for a piece of jewelry? Chances are you’re the only person interested in a given item in the jeweler’s case, and while you may be able to bargain a bit, it’s just you and the je
