English auction
An English auction is a widely used method of selling goods and services to the highest bidder, where the bidding starts at a low price and increases as participants compete. This auction format is prevalent globally, both in physical venues and online platforms, and is particularly noted in markets dealing with antiques, collectibles, real estate, and artworks, where items can fetch substantial sums. Typically, an English auction begins with an inspection period for potential bidders, followed by the auctioneer introducing items for sale and setting a starting bid. As the auction progresses, bidders can place higher bids, with the auctioneer facilitating the process until only one bidder remains.
At the close of bidding, the highest bidder secures the item for the final bid amount, which may be subject to additional fees like buyer's premiums. These premiums, usually a percentage of the winning bid, and seller's commissions constitute the primary revenue for auction houses. Moreover, advancements in technology have led to the emergence of online auctions, which allow for a more interactive bidding experience, often extending over several days. Overall, English auctions present a dynamic and engaging way for buyers and sellers to interact in various markets.
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English auction
An English auction is a method of selling goods and services to the highest bidder—the person who offers to pay the highest price. English auctions are the most common type of auction worldwide and appear in both physical and online forms. The hallmark of English auctions is that the price of the item starts low and increases over the course of the bidding. The term “auction” is based on augere, a Latin word meaning “to increase,” reflecting the cumulative bidding structure.
Overview
English auctions are most commonly used to buy and sell objects, often antiques, collectibles, real estate, and furnishings. Some of the most notable English auctions occur in the art world, when rare paintings and other artworks often fetch bids in the thousands or millions of dollars. However, many other goods or services can be bought or sold at auction. For example, auctions at farmers' markets may sell crops and livestock.
English auctions take different forms, but in general, they follow a similar procedure. Physical auctions typically begin with an inspection period during which potential bidders may examine the wares being offered. When the auction begins, items are brought to the front one at a time. The auctioneer, the moderator of the auction, will generally introduce the item for sale and announce a starting bid based on its estimated value. Auction participants have the option of bidding for the item at the stated price. If one bidder meets the opening bid, the auctioneer will raise the bid and give other participants the option to bid at that new price.
The bidding continues in that manner, gradually increasing the price in increments chosen by the auctioneer until only one bidder is left. At this time, the auctioneer generally signals that the active bidding is ending, and the item will soon be sold, often using phrases such as “going, going, gone,” or “going once, going twice, sold.” Bidders may make last-minute bids at this time or decline and let the auction end. At the end of the auction, the item is legally sold to the highest bidder for the highest bid amount.
Winning bidders are required to pay the amount of their highest bid. In addition, many auctions charge fees such as buyer’s premiums meant to cover the expenses of the auction house. These extra fees are stated before the auction begins and usually take the form of a percentage of the winning bid, such as 10 percent. These buyer’s premiums are a primary means of profit for an auction house. The other avenue of profit is the seller’s commission, a percentage rate taken from the winning bid for each consigned item sold.
English auctions can take place both physically and can also be found on the Internet. Online auction sites, such as eBay, employ similar techniques but revise them for digital use. As technology has advanced, technologies such as virtual reality, augmented reality, and artificial intelligence have made online auctions more immersive and interactive. Most online auctions last for several days or longer, giving bidders ample opportunity to find and study the items using descriptions and pictures provided by the seller. Then, the bidder may enter a bid, which is automatically compared to existing bids. Bidders who are outbid have the option of raising their bids until the stated end of the auction, at which time the item sells to the highest bidder.
Bibliography
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