There are several ways of determining the price of an item or a service. Among these price determination techniques is auction. In this technique, the item or service under sale is offered up for bidding. This is followed by participants taking bids before the item is sold to the highest bidder. Today, the open ascending price auction is the most practiced one. This is what AZ live auction are all about.
In this price determination method, participants are allowed to bid openly against each other. The rules of this process dictate that subsequent bids must be higher than the previous ones. Normally, either bidders or an auctioneer shouts the bids offered. In some settings, a proxy calls out bids on behalf of their bidders. Advancement in technology has made it possible for auctions to be conducted electronically.
During electronic auctioning, bids that are publicly displayed are usually the currently highest bids. Bids are usually submitted through electronic media. The most common type of auctioning is the open ascending price auctions or the English auctions but other auctioning methods exist. They comprise of blind, Dutch and vickrey auctions.
Open descending price auction or the Dutch auction is the opposite of the English type of auctioneering. Typical Dutch auctioneering begins with the auctioneer asking for a high price for a certain quantity of items. This is then followed by subsequent lowering of the initial high asking price until a participant is willing to take the price quoted by the auctioneer. Sometimes the auctioneer has to stop at the price reserved by the owner of the item.
In this auctioning method items are usually sold in certain quantities. The whole lot of the item has to be shared by other bidders if the first bidder cannot buy the whole quantity of the item. The items are however given to bidders according to their bid orders. This means that the first bidder usually selects their item first before other bidders do.
Blind auction is another kind of auctioneering which is also referred to as first-price sealed-bid auctioning. Its name already gives a suggestion of what it is. It is a more interesting kind of auctioneering because the bidding is done blindly. Sealed bids are submitted simultaneously by all the participants. There is secrecy in the bids submitted by each participant. Submission of a single bid being allowed for every bidder makes it unique.
Most people associate auctions with the sale of paintings, antiques, expensive wines, and rare collectibles. While this may be true, such people fail to acknowledge that auctions are also used in selling livestock, cars, houses, tobacco, flowers, and fish. It is also important to point out that each type of auctioneering is suitable for application in different situations. The organizers of the event usually consider this before settling for a particular type of auctioning method.
As already mentioned, auctions also have their shortcomings. The first shortcoming is collusion. Collusion erodes this price determination method such that the whole thing is manipulated. This normally happens when bidders have an arrangement in which they agree to bid against other bidders and not amongst themselves. Collusion is illegal in most countries.
In this price determination method, participants are allowed to bid openly against each other. The rules of this process dictate that subsequent bids must be higher than the previous ones. Normally, either bidders or an auctioneer shouts the bids offered. In some settings, a proxy calls out bids on behalf of their bidders. Advancement in technology has made it possible for auctions to be conducted electronically.
During electronic auctioning, bids that are publicly displayed are usually the currently highest bids. Bids are usually submitted through electronic media. The most common type of auctioning is the open ascending price auctions or the English auctions but other auctioning methods exist. They comprise of blind, Dutch and vickrey auctions.
Open descending price auction or the Dutch auction is the opposite of the English type of auctioneering. Typical Dutch auctioneering begins with the auctioneer asking for a high price for a certain quantity of items. This is then followed by subsequent lowering of the initial high asking price until a participant is willing to take the price quoted by the auctioneer. Sometimes the auctioneer has to stop at the price reserved by the owner of the item.
In this auctioning method items are usually sold in certain quantities. The whole lot of the item has to be shared by other bidders if the first bidder cannot buy the whole quantity of the item. The items are however given to bidders according to their bid orders. This means that the first bidder usually selects their item first before other bidders do.
Blind auction is another kind of auctioneering which is also referred to as first-price sealed-bid auctioning. Its name already gives a suggestion of what it is. It is a more interesting kind of auctioneering because the bidding is done blindly. Sealed bids are submitted simultaneously by all the participants. There is secrecy in the bids submitted by each participant. Submission of a single bid being allowed for every bidder makes it unique.
Most people associate auctions with the sale of paintings, antiques, expensive wines, and rare collectibles. While this may be true, such people fail to acknowledge that auctions are also used in selling livestock, cars, houses, tobacco, flowers, and fish. It is also important to point out that each type of auctioneering is suitable for application in different situations. The organizers of the event usually consider this before settling for a particular type of auctioning method.
As already mentioned, auctions also have their shortcomings. The first shortcoming is collusion. Collusion erodes this price determination method such that the whole thing is manipulated. This normally happens when bidders have an arrangement in which they agree to bid against other bidders and not amongst themselves. Collusion is illegal in most countries.
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The AZ live auction will be taking place very soon. To take part make sure you refer to the following website at http://www.brunksauction.com.
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