What is an auction?

An auction is a way of buying and selling items by offering them up for bid. It is essentially just a specific form of trading that follows certain rules.

The way auctions are run may differ. The most common form is the English auction. Usually, there is a minimum bid, which is named by the person running the auction. This is the lowest price at which the item can be purchased. Usually following is a time period in which participants bid against each other. Either the bidders themselves or the auctioneers announce prices. Higher and higher prices are named, the highest being publicly displayed. Sometimes there is a time limit, and the highest bidder at the end of that time limit buys the item. Other times, the auction continues indefinitely until people stop bidding either because the bidding has reached the maximum price or because the people participating are no longer willing to raise the bid any longer. After the bidding is over, the item is sold to the person who is willing to pay the most for it. But how do you determine if the item being auctioned is really worth x amount of money. Usually experience buyers have the knowledge to determine whether an item is worth the going the price.

Similarly, with experience car accident injury attorneys can determine whether or not to take a case by knowing how much they can get in a settlement for any particular type of car accident. Since most car accident lawyers work on contingency, they only see money if they win a settlement. Then they receive from the client somewhere between 30%-40% of the settlement. Usually they will not take on cases in which the payout is not worth their time. In fact, one car accident lawyer I know tells people who call asking for help, that unless someone has been seriously injured in the car accident, they should not even consider hiring a lawyer. Fortunately for people looking for car accident attorneys they don’t have to get in a “bidding war” for a lawyer’s services. Everything should be laid out up front, IF the attorney is willing to take your case.

Another less popular form of auction is the Dutch auction. This method contrasts the previous method because the auctioneer names the highest asking price. Normally, few people are willing to pay this, so it is lowered until somebody accepts the price and buys the item. This type of auction is sometimes used for perishable items, but it is generally not very widespread.

The Sealed first-price auction is another form that is sometimes used. In this auction, all bidders submit one bid, and the person who submits the highest one buys the item it his or her submitted price. This is slightly different than the English auction, because no bidders know the bids of the other participants, and no one can bid more than once.

There are many more forms of auctions, but many of them are only variations of the English method, the most popular form and the most well known.

Eduardo Pinte writes for Mercury Forlorn as well as other online publications and is versed in both online commerce and large website seo. These skills make it possible for a website to show up the search results when someone enters terms in a search engine. There is a difference between the auction and bidding process used in Adwords, where search rank is purchased, and in the natural search, where rank is earned. The primary difference is that the Adwords positions are paid, and require constant payments to Google in order to keep the website at the top of the search. In the natural search, rank is achieved via relevance, not by buying or bidding.

There are many types of auctions around.

June 10, 2010

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