auction sales

Auction


An auction or auction is an organized sale of a product based on direct competition, and generally public, that is, the buyer (bidder) who pays the most money or goods in exchange for the product. The good auctioned is awarded to the bidder who has offered the most money for it, although if the auction is in a sealed envelope, the good is awarded to the best offer without the possibility of improving it once it is known.

Traditionally in the theory, two major types are recognized: the auction in closed envelope (which can be first price or second price) and the dynamic auction, which can be auction ascending (English), descending (Dutch), or "all" pagan "(American auction). There are also reverse auctions or purchase, in which the buyer is the one who calls potential sellers or suppliers (eg government purchases). A new category of auctions is that of reforms and projects where an auctioneer awards his project to the best bidder.

Index
1 History
2 Types of auctions
2.1 Auction in closed envelope
2.2 Dynamic auction
2.3 Round Robin Auction
2.4 Downhill auction
2.5 Auction for cents
2.6 Auction and contest
2.7 Auction of Budgets
2.8 Silent Auction
3 See also
4 External links
History
The word auction has distant historical roots and originally comes from the Latin sub until, under spear, because the distribution of conquered lands among the participating soldiers was marked by casting a spear on the plot occupied in luck. Also the sale of the booty of the war was announced with a spear and the sale was made before it.

One of the most famous historical examples was the auction of the wife during the Babylonian Empire which was held annually. The operation began with the auction of the most beautiful woman and then proceeded one by one with the others. It was in fact an illegal act to "get" a wife out of that purchase process.

Equally famous were the slave auctions during the Roman Empire which were captured in military campaigns and then auctioned off in the forum. The funds raised in these auctions served in turn to finance the war efforts of the empire.

Although transactions such as those described above had boomed in their respective societies, the sale system based on auctions had been relatively rare until the seventeenth century. Possibly the oldest auction house in the world, the Stockholm Auction House (Stockholm Auktionsverk), was established in 1674 in Sweden.

At the end of the 18th century, shortly after the French Revolution, auctions were held in taverns to sell art items. These auctions were held daily and the catalogs were printed to advertise available items that were usually rare collectibles. In some cases these catalogs ended up becoming works of art that contained countless details about the items on auction. The two most important auction houses, Sotheby's and Christie's, held their first official auction in 1744 and 1766 respectively. In Spain the most important auction house is Balclis, founded in 1979.

In the case of dynamic auctions, the one that directs and publicly awards the winner of the best bid (bid) is called auctioneer or auctioneer, in reference to the use of a wooden hammer that hits a counter to indicate the completion of the auction.
Types of auctions
Auction in closed envelope
The auction in sealed envelope is one in which the bidders present their offer on a single occasion. It can be First price if the winner pays the price offered, or Second price if the winner pays the price offered by who came second.

Dynamic auction
Bidders know the offers of their competition and can modify yours while the auction is open. The dynamic auction may be ascending (English), which starts from a reserve price and consists of the bidders presenting ascending prices, with those who offer the highest price; descending (Dutch) that starts with a certain price, higher than all the offers, and that the auctioneer goes down in stages: the bidder who first accepts a price wins. In the American auction, all the bidders must pay for the offer they make, but only the one that makes the best offer obtains the product.

Round Robin Auction
It is a variant of the auction with closed offer that is used primarily for the sale of real estate. Interested parties make their offers in a closed bag and then the auctioneer tells the bidders what is the offer that is being auctioned at that time. After such communication, participants may try to exceed the maximum bid or leave the auction.

Downward auction
It is a downward auction, or reverse auction, contracting mode in which the participating suppliers bid to offer the lowest price, so that the purchasing institution accepts their offer.

Auction for cents
This new variant of auctions consists of raising the price of the product by one cent with each bid made. Each product has a clock, and the auction only ends when the countdown ends and therefore, when no other person has bid for the product during the period marked on your watch. The last person to bid wins the product for the amount that accompanies it at the end of the auction.1

Auction and contest
The auction will deal with a type expressed in money, with an award to the bidder that, without exceeding that, offers the lowest price.

In the Contest, the award will fall on the bidder who, as a whole, makes the most advantageous proposal, taking into account the criteria that have been established in the bidding documents, without attending exclusively to the price thereof and without prejudice to the right of the bidder. Administration to declare it deserted.

Budget Auction
The novelty of the auctions, is another type of auctions related to professionals and budgets, increasingly extended by these times of crisis. The clients demand a service (reforms, removals, electricians, painters, etc.), the professionals bid for the lowest price to acquire the budget and perform the service, in this way they get cheaper prices and business competitiveness.Silent Auction
Bids are written on sheets of paper. At the end of the auction, the highest bid is awarded for the auction. This type of auction is frequently used in charity events, in which many objects are auctioned simultaneously, and "closed" at a predetermined time common to all objects. The auction is "silent" because there is no auctioneer and the bidders write their bids on a sheet that is usually left on a table near the object. In the charity auctions, the sheets usually indicate a minimum initial bid, the increments that can be made on said minimum bid and an amount, called "guaranteed bid" that if paid, the object is obtained immediately. Other variations of this type of bid may include sealed bids. The bidder with the highest bid pays the price indicated on his sheet and gets the good.