Auctioning

Auctioning is the process of selling goods or services to the highest bidder through a bidding process, which may be conducted in person, by telephone, or online. Auctions are used for a wide range of items, from consumer electronics to fine art, real estate, and collectibles. An auction is typically facilitated by an auctioneer or an online platform.

Common auction formats include English auctions, in which bids rise and the highest bidder at the end wins; Dutch auctions, where prices are lowered until a bidder accepts; and sealed-bid auctions, where bids are not disclosed until the closing. Some auctions include reserve prices and bid increments, and many use proxy bidding or automatic bidding.

A typical process involves listing the item (a lot) with a starting price and terms, inviting bids, and, if the reserve is met, awarding the item to the highest bidder when the auction closes. Key terms include hammer price, buyer's premium, lot, catalog, reserve price, and bidder. Participants include sellers, bidders, auctioneers, and clerks.

Online auctions broaden access and may include feedback and reputation systems, while traditional live auctions rely on live bidding and the auctioneer's bidding signals. Regulation varies by jurisdiction and may cover licensing of auctioneers, consumer protection, anti-fraud measures, and rules on transparency and record keeping.

Historically, auctions have existed in various forms since antiquity. Modern organized auctions emerged in Europe in the early modern period, with real estate and art auctions. The advent of the internet and specialized platforms, such as eBay and Sotheby's, significantly expanded the reach and scope of auctioning.