What is online auction?

Time benefits: reducing paperwork, photocopy, and postage

In a supply (or reverse) auction, m sellers offer a good that a buyer requests

Better efficiency in the process

In a demand auction, n buyers bid for a good being sold

In a double auction n buyers bid to buy goods from m sellers

Prices are bid by buyers and asked (or offered) by sellers. Auctions may also differ by the procedure for bidding (or asking, as the case may be):

In an open auction participants may repeatedly bid and are aware of each other's previous bids.

In a closed auction buyers and/or sellers submit sealed bids

Auctions may differ as to the price at which the item is sold, whether the first (best) price, the second price, the first unique price or some other. Auctions may set a

reservation price which is the least/maximum acceptable price for which a good may be sold/bought.

Without modification, auction generally refers to an open, demand auction, with or without a reservation price (or reserve), with the item sold to the highest bidder.

Auctions are publicly and privately seen in several contexts and almost anything can be sold at auction. Some typical auction arenas include the following:

The antique business, where besides being an opportunity for trade they also serve as social occasions and entertainment

In the sale of collectibles such as stamps, coins, vintage toys & trains, classic cars, fine art[55] and luxury real estate

The wine auction business, where serious collectors can gain access to rare bottles and mature vintages, not typically

available through retail channels

In the sale of all types of real property including residential and commercial real estate, farms, vacant lots and land; this is

the method used on tax sales.

For the sale of consumer second-hand goods of all kinds, particularly farm (equipment) and house clearances and online

auctions.

Sale of industrial machinery, both surplus or through insolvency.

In commodities auctions, like the fish wholesale auctions

In livestock auctions where sheep, cattle, pigs and other livestock are sold. Sometimes very large numbers of stock are

auctioned, such as the regular sales of 50,000 or more sheep during a day in New South Wales.[56]

In wool auctions where international agents purchase lots of wool[57]