auktion

An auction is a public sale in which goods, rights, or property are sold to the highest bidder. Auctions are conducted by an auctioneer or through a platform and may take place in person, online, or as a combination. The seller typically sets terms, including a reserve price—a minimum price that must be reached for the sale to proceed—and a buyer’s premium, which is added to the hammer price. In Swedish, auktion refers to this practice.

Bidding formats vary. The English or open-outcry auction features ascending bids until no higher bid is offered; the highest bidder wins and pays the hammer price plus any premium. Dutch auctions start with a high asking price that decreases until a bidder accepts, ending the sale. Sealed-bid auctions require participants to submit bids privately; in first-price sealed-bid the highest bid wins and pays that amount, while in second-price (Vickrey) sealed-bid the winner pays the second-highest bid.

Key terms include lot (an item or group of items), hammer price (the bid at which the item is sold), reserve price, and catalog. The process generally involves cataloging, inspection, bidding, payment, and delivery, with terms defined by the auction house or platform.

Auctions are used for art, antiques, collectibles, real estate, vehicles, and industrial goods. Online auctions have expanded access and increased bidding speed, while regulatory frameworks address fraud, consumer protection, and fair bidding practices.