The Meaning Of Auctions And How They Work

997 words - 4 pages

1. Introduction
The meaning of auctions and how they work
We can say that auction is a market mechanism by which purchaser make tenders and traders (dealers) place offers. The competitive and dynamic nature are the main characteristics of auctions by which the final price is reached, also auctions are an applicable method of commerce and trading for generations; transact with services and products for which traditional marketing channels are inefficient.
The Internet, nowadays, supplies an infrastructure for doing auctions at lower price with many more dealers and purchasers.

2. Dynamic pricing and Types of auctions
Auction has a major characteristics which it’s based on the dynamic pricing. “Dynamic pricing” refers to a purchase operation (transaction) where the price or the cost is not fixed.
On the other side, prices in supermarkets, department stores, and the other storefronts are fixed because they are catalog prices. Different types of auctions are available, each one of them has its own procedures and motives. Based on how many purchasers and traders are involved, it is customary to assort dynamic pricing into four main categories, and each of them can be done off-line or online.
Types of auction:
A) One Buyer, One Seller
Each side can use bartering, bargaining, or negotiation. The final price will be determined by the power of bargaining, demand and supply in the item’s market, and maybe business-environment factors.
B) One Seller, Many Buyers
Forward auctions are used here by the dealer (the price increases with time in these auctions). Another example of this type is Sealed-bid auctions. In a first-price sealed-bid auction, the product is granted to the highest bidder while in “Vickrey auction” (a second-price sealed-bid auction); the product is granted to the highest bidder at the second-highest price that was bid.
C) One Buyer, Many Sellers
Auctions are (biddings) in this category and they are used mainly in B2B or G2B, in which one buyer solicits bids from many sellers or suppliers. Here, because of the price reduces sequentially, and the lowest bid wins, these auctions are called reverse auctions.
Another type in this category is “Name-your-own-price model”, which is pioneered by Priceline.com.
D) Many Sellers, Many Buyers
In this type, sellers and their asking prices and buyers and their bidding prices are matched based on the quantities on both sides. Typical examples of this configuration are stocks and commodities.
3. E-auctions and the benefits of electronic auctions over traditional (off-line) auctions.
Electronic auctions (e-auctions): auctions conducted online, have been in existence for several years on local area networks and were started on the Internet in 1995.
Electronic auctions are superior to traditional auctions, the reason is because they do not suffer the same limitations. In the other words, Electronic auctions can occur over greater time periods and are not limited by location since they take place in...

Find Another Essay On The Meaning of Auctions and How They Work

Online Auctions and the Law Essay

1738 words - 7 pages companies' rights to sell whatever materials they choose.More and more people are turning to online auctions in hopes of finding top-notch goods at fire-sale prices or making a few bucks off the unwanted items collecting dust in their garages. At online auction sites, you can sell and bid upon just about anything under the sun -- antiques and collectibles, computer equipment, stun guns, clothing, jewelry, furniture, memorabilia, and a host of other

Satilites how they work what they do. also geostaionary and types of satellites

770 words - 3 pages to send radiation measurements from the earths surface and atmosphere and give information on the amount of heat and energy being released from the earth's and the earths atmosphere, Weather satellites are also used for people who fish for a living as they can find out valuable information about the temperature of the sea from measurements that the satellites makes. Whether satellites are located orbiting very high above the earth, at an altitude

Online Auctions And The Law / Censorship

726 words - 3 pages companies' rights to sell whatever materials they choose.More and more people are turning to online auctions in hopes of finding top-notch goods at fire-sale prices or making a few bucks off the unwanted items collecting dust in their garages. At online auction sites, you can sell and bid upon just about anything under the sun -- antiques and collectibles, computer equipment, stun guns, clothing, jewelry, furniture, memorabilia, and a host of other

Profanation: How Breaks in Structures Affect Different Cultures Prompt: Dissect the meaning of symbols in Durkheim and relate it to Hebdige's work "Subculture"

2722 words - 11 pages Nedum Aniemeka SOSC 12200 March 18, 2014Profanation: How Breaks in Structures Affect Different CulturesMany of the authors we have read this quarter have explored the presence of structures in society in order to flesh out what culture is. Specifically, these authors not only attempt to identify the structures present in any given culture, but they also dissect and examine the relationships between these structures in order to determine how a

Routers - how they work and how their used

1185 words - 5 pages routers now include rules in the configuration table that will disregard abnormally high amounts of requests from the same address. (McGraw)There are many different types of routers, where they all have different functions depending on how big and advanced they are. For example the most basic type of router maybe having one computer hooked up to the Internet, and use that computer to route the Internet connection to another computer. This is the most

How are Car batteries made and how they work ?

794 words - 3 pages How are car batteries made and how do they work? Include chemical reactions that are involved in the process.A battery is a device for storing chemical energy and converting that chemical energy into electricity. A car battery is a type of rechargeable battery that supplies electric energy to an automobile. Usually this refers to an SLI battery (starting, lighting, and ignition) to power the starter motor, the lights, and the ignition system of

The Work-Meaning Connection

1657 words - 7 pages for pay and when they are absorbed in that work, they have achieved a connection between their spirit and their work. Career development plays a role in this process by helping individuals discover their needs, interests, and values and understand the nature of work and occupations, and then by assisting in bringing the two areas together. Meaning lies in how the two areas are merged. (Bloch 1997). Bloch (1997) suggests the practice of

Hot Air Balloons - How they work, how they comply with laws of thermodynamics, and how to create a home-made balloon

550 words - 2 pages to their clever implementations of the gas laws, primarily Charles’s Law. They are simple but effective, which will forever earn them a place in the world of chemistry.Bibliography“How Hot Air Balloons Work.” How Stuff Works. 3 Feb 2006. “Ask An Astrophysicist.” NASA Goddard Space Flight Center. 3 Feb 2006. “Tissue Paper Hot Air Balloon.” Solo Spirit Education.

The Things They Carried and its Dual Meaning

878 words - 4 pages situation. As O’Brien continues the story, the items carried by each individual go on to give insight to each of the individual soldiers. I believe that the items are reminiscent to each individual, and show how they each cope with their situation in their own ways. For example, Ted Lavender “carried tranquilizers…six or seven ounces of premium dope…” (179). Ted Lavender is described as being scared, and the tranquilizers and drugs show his method of

Relationships how they work and what holds them together

963 words - 4 pages drunk, causing them to crash the car.After this initial contact is made, trust carries the relationship to the next level. This is due to the fact that people must trust each other enough to share their feelings, secrets, and life stories without the fear of rejection or humiliation. They must feel as if they are in a safe environment in which they can share details of their life without being criticized or made to feel like they are inferior to

The Meaning of Work: The Variety of Motivators

1262 words - 6 pages their careers for different reasons such as a responsibility to support their families, a desire to benefit the society, and an eagerness to follow their dreams. Sometimes, people work just to earn the money to provide a more comfortable life for their families. Although their current jobs may not be their dream jobs, they still work for the paycheck they earn. In the essay “Workers,” Rodriguez mentions a group of Mexican migrant workers with

Similar Essays

Dreaming, The Stages Of Sleep And How They Work Together

1325 words - 5 pages Dreams play a large role in many people's lives. They can reflect and pertain to all aspects of life, and can have a deeper meaning than might immediately be realized. Learning about the effect of dreams and sleep is very important. Following the stages of sleep is an easy way to determine when a person is going to dream; thinking about the last thing you saw on television, for example, may hint to what you are going to dream about. The

The Minds Of Serial Killers And How They Work

1489 words - 6 pages turmoil over his sexuality”(Gacey). Most of the people he killed were young boys and the most infamous way he lured his victims into his home was by telling them they could a job in construction. After entering his house he would take them down to the basement and rape and kill them. Sometimes he would even dress up as a clown which was how he got his nickname “Pogo the Clown”(Gacey). As the serial killers were children, most went through what they say

The Meaning Of Work Essay

780 words - 3 pages , you can sell your ability to work in order to receive money or other benefits. I will first discuss how the definition of work is shaped by the social and cultural context in which a person is embedded; second, why people choose to work; and finally, the meaning work has in my life.How a person perceives the word work is shaped by the social and cultural context in which a person is embedded. My family has been the key factor in shaping my

Radios, And How They Work Essay

3090 words - 12 pages Idoh GerstenPhysicsIdoh GerstenMr. ZambiziPhysicsMarch 12, 1995Radio is a form of communication in which intelligence is transmitted without wires from one point to another by means of electromagnetic waves. Early forms of communication over great distances were the telephone and the telegraph. They required wires between the sender and receiver. Radio, on the other hand, requires no such physical connection. It relies on the radiation of energy