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.
The bid that is currently highest is the only one that is displayed publicly when conducting auctions electronically. In these cases, bidders use electronic media in submitting bids. Apart from the open ascending auction or English auction, other primary kinds of auction exist around the world. They include Dutch, blind and vickrey auctions.
The Dutch auction or open descending price type of auctioning is contrary to the ascending price auction. Normally, open descending auctioneering starts with a given high price being asked for by the auctioneer on an item. This is followed by continuous lowering of the high price that was asked for previously. This is done until the price that has been quoted by the auctioneer is taken by a willing participant. At times the price the owner has reserved for the item is stopped at by the auctioneer when it is reached.
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.
The other type of auctioneering is the blind auctioning also known as the first-price sealed-bid auction. It is the most interesting type of auctioneering as already suggested by its name since bidders bid blindly. All participating bidders are required to submit simultaneously their sealed bids. This means that no one gets to know the bid submitted by the others. Its uniqueness also lies in the fact that bidders are each allowed to submit a single bid.
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.
The bid that is currently highest is the only one that is displayed publicly when conducting auctions electronically. In these cases, bidders use electronic media in submitting bids. Apart from the open ascending auction or English auction, other primary kinds of auction exist around the world. They include Dutch, blind and vickrey auctions.
The Dutch auction or open descending price type of auctioning is contrary to the ascending price auction. Normally, open descending auctioneering starts with a given high price being asked for by the auctioneer on an item. This is followed by continuous lowering of the high price that was asked for previously. This is done until the price that has been quoted by the auctioneer is taken by a willing participant. At times the price the owner has reserved for the item is stopped at by the auctioneer when it is reached.
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.
The other type of auctioneering is the blind auctioning also known as the first-price sealed-bid auction. It is the most interesting type of auctioneering as already suggested by its name since bidders bid blindly. All participating bidders are required to submit simultaneously their sealed bids. This means that no one gets to know the bid submitted by the others. Its uniqueness also lies in the fact that bidders are each allowed to submit a single bid.
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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