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Auctions: A Closer Look
By Tom Takihi
You've read about them, you've heard about them, you've probably participated in one. But what exactly are auctions? Isn't it just the simple method of selling an object to interested people who bid until the highest bidder gets it?

That is definitely the scenario in most auctions. But auctions are actually more complex than people realize. Do you know that not all auctions have ascending price schemes? While the ascending bid is the most popular auction format, other formats exist such as the descending, simultaneous and handshake forms of bidding.

An auction, in general terms, is the method of allocating scarce goods. It is a unique selling method that is based on competition. Truly, the objectives are simple: the seller wants to obtain the most money for his item while the buyers want to purchase it at their own desired prices. Everything can be sold in auctions - from singular items like paintings to multiple units of a homogenous item such as treasury securities. Auctions are most useful when a seller is unsure of the price his item can get, or when selling a commodity with undeterminable quality.

Some unique things about auctions: the price of an item is set by the bidders and not by the seller. Also, the auctioneer doesn't own the goods but rather acts as an agent for the real owner. Lastly, buyers often know the value of an item more than the seller.

Various classifications of auctions exist. There are open auctions and sealed-bid auctions. There are auctions wherein the price simple ascends and there are auctions where the price drops at regular intervals. Experts agree, however, that there are four major one-sided auction formats: English, Dutch, First-Price sealed-bid, and Vickrey (uniform second-price).

You may ask

which type of auction is the best. It actually depends on the perspective of both the seller and the buyer. Some auction types lessen room for cheating while others seem to actually encourage such. Some auctions require the presence of the buyer while some do not. Before an auction is set, the seller must first analyze the auction format that would best benefit him. An aspect of auctioning that is sometimes very vital is speed. If the item you are selling perishes quickly, like flowers or fish, of course a quick auction is required.

While it has its' advantages, an auction also has drawbacks, like the so-called "winner's curse". This is the phenomenon when a "lucky" winner pays more for an item than it is worth. These winners realize that their valuation of an object is higher than that of anyone else.

In this age of modern technology, auctions have found a place where it can thrive and reach more prospective buyers: the Internet. Online auctions are becoming more popular each day as buyers can browse through the products and bid at their own time and pace. Furthermore, the range of products people auction online is endless and intriguing - you could spend hours just browsing.

All in all, auctions are a pure marketplace at work in its finest form. So if you're planning to sell something, you might consider auctioning it. Just look at it from this perspective: your clutter is other people's treasure. And they're going to compete to get it.

Tom Takihi is the proud owner of AuctionDN.com, an online auction website for domain names. To register as a buyer or seller for free, please visit-: www.auctiondn.com


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Auction News Updated Daily
02/08/2012 12:00 AM
Bid Now - Japanese Restaurant Kitchen Equipment & Furniture
This event is now open for offers. To make an offer or find out more, visit http://www.go-dove.com/event-16327.Tender sale for about 40 items of restaurant furniture and Japanese brand kitchen equipment including Freezer, Ice Maker, Fridge, Oil Boiler, Food Display Warmer, Griller, Electric Open-kit...
02/08/2012 12:00 AM
Bonhams Fine & Rare Wines sale – 9th February 2012
Following on from another excellent year in 2011, with an increase in sales of nearly 50% for the second year in succession, Bonhams first wine sale of 2012 will be held on 9th February. Whilst the prestigious first growths of Bordeaux have been largely responsible for driving the market up,...
02/08/2012 12:00 AM
A rare luxury new-build opportunity in a sought-after West Sussex village
Featuring just three properties, Emett Gardens in Ditchling is a very exclusive address and a rare chance to benefit from a new-build home in this very sought-after village. One of these new homes in West Sussex has already been reserved, leaving just two luxury five-bedroom houses for sale, each pr...
02/08/2012 12:00 AM
Tottenham stadium plans will not feature affordable homes
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The Boy Who Bakes cooks up a Valentine's Day treat for Barratt Homes this weekend
National housebuilder Barratt Homes is hosting a special event at its Gatekeeper Meadow development of new homes in Hertfordshire this Saturday 11th February. Edd Kimber, aka "The Boy Who Bakes", who won the Great British Bake Off on BBC2 in 2010, will be presenting a special Valentine'...


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How To Sell Houses At Auctions
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Advertising your property at auction can be an immense way of selling your home as quickly as possible. But keep in mind to pack your bags in time – you will have to renounce the keys 28 days Read more...
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car (Category: Cars )
01/29/2012 06:53 PM
2003 BMW M3 E46 SILVER Genuine car, great condition, low start price, no reserve
£7,850.00 (0 Bid)
End Date: Wednesday Feb-08-2012 18:53:54 GMT
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02/05/2012 06:56 PM
ROVER 214 SILVER ** MOT & TAX ** LOW MILAGE ONLY 53k ** RELIABLE CAR 5 DOORS
£360.00 (4 Bids)
End Date: Wednesday Feb-08-2012 18:56:59 GMT
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05/24/2011 06:59 PM
2004 54 CITROEN C5 2.0 HDi VTR LOVELY CAR THROUGHOUT!
£1,995.00
End Date: Wednesday Feb-08-2012 19:04:10 GMT
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01/11/2012 07:05 PM
2004 JAGUAR X-TYPE SE D BLACK Beautiful Car Luxury Fully Loaded Pristine Leather
£4,995.00
End Date: Wednesday Feb-08-2012 19:05:15 GMT
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01/29/2012 07:07 PM
CITROEN SAXO VTR 02 REG 1.6cc 3-DOOR BLUE GOOD CAR!
£1,200.00 (0 Bid)
End Date: Wednesday Feb-08-2012 19:07:25 GMT
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