Auction

Executive Summarize From Wikipedia, the free encyclopedia

An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the winning bidder. In economic theory, an auction may refer to any mechanism or set of trading rules for exchange.

There are several variations on the basic auction form, including time limits, minimum or maximum limits on bid prices, and special rules for determining the winning bidder(s) and sale price(s). Participants in an auction may or may not know the identities or actions of other participants. Depending on the auction, bidders may participate in person or remotely through a variety of means, including telephone and the internet. The seller usually pays a commission to the auctioneer or auction company based on a percentage of the final sale price.

History of the auction

The word "auction" is derived from the Latin augēre, which means "to increase" or "augment".
For most of history, auctions have been a relatively uncommon way to negotiate the exchange of goods and commodities. According to Herodotus, in Babylon auctions of women for marriage were held annually. It was considered illegal to allow a daughter to be sold outside of the auction method.
During the Roman Empire, following military victory, Roman soldiers would often drive a spear into the ground around which the spoils of war were left, to be auctioned off. Later slaves, often captured as the "spoils of war", were auctioned in the forum under the sign of the spear, with the proceeds of sale going towards the war effort.

The Romans also used auctions to liquidate the assets of debtors whose property had been confiscated. One of the most significant historical auctions occurred in the year 193 A.D. when the entire Roman Empire was put on the auction block by the Praetorian Guard. This auction began by lighting a candle after which bids were offered in ascending order until the candle spluttered out. The high bid at the time the candle extinguished itself won the auction.
The oldest auction house in world is Stockholm Auction House (Stockholms Auktionsverk). In some cases these catalogs were elaborate works of art themselves, containing considerable detail about the items being auctioned.Sotheby's, now the world's second-largest auction house, held its first auction in 1744. Christie's, now the world's largest auction house, was established around 1766. Other early auction houses that are still in operation include Dorotheum (1707), Bonhams (1793), Phillips de Pury & Company (1796), Freeman's (1805) and Lyon & Turnbull (1826).

During the American civil war goods seized by armies were sold at auction by the Colonel of the division.