 | ||
|
| ||
|
|
Auction Information ChannelSEARCH: The auction information channel Directory of Information
auctions Akron, Ohio listings, estate sales Akron, Ohio, surplus liquidations Akron, Ohio
We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics. |
|
|
|
|
|
 |
|
|
Place your TextLink AD here free |
William Vickrey, highly regarded as the founder of auction theory, was an economics professor at Columbia University when he published two papers outlining his views on auctions:
"Counterspeculation, Auctions, and Competitive Sealed Tenders", 1961, Journal of Finance
"Auction and Bidding Games", 1962, Recent Advances in Game Theory
In 1996 he received a Nobel Prize "for fundamental contributions to the economic theory of incentives under asymmetric information." It's important to understand that asymmetric information is an essential component of auctions, where potential buyers have varying levels of knowledge about the value of the item.
Although Vickrey considered his work on auctions as "one of my digressions into abstract economics, at best of minor significance in terms of human welfare", to those of us who work with online auctions, much of what he outlined is useful to understanding our marketplace.
Vickrey identified 4 general types of auctions:
English
Dutch
First-price sealed bid
Second-price sealed bid
English Auctions
The most common type of auction is the English Auction, although
it may also be known as an ascending price auction. In ascending
price auctions each subsequent bid is higher than the previous
one. This is the most popular type of auction for single
items.
Although traditional ascending price auctions use a "soft close" format - where bidding continues until a final bid is placed, the majority of today's on-line auction sites use the "hard close" format - also known as a 'time interval" auction having a set time limit, regardless of ongoing bidding. It's important to note that in a "soft close" format, bid snipping, that is bidding during the last few seconds or minutes on an item, is eliminated since the auction stays open as long as bids are being made.
In an attempt to minimize bid snipping and provide more of a "soft close" characteristic to their "hard close" auctions, eBay allows bidders to use "proxy bidding". In proxy bidding, a bidder enters the highest price they are willing to pay for an item when they first bid. The bid begins at the lowest possible level and increases automatically only if their original lowest bid has been beaten. For more in-depth information on the "proxy bidding capability on eBay go here.
http://pages.eBay/help/buy/proxy-bidding.html
Amazon.com currently offers a feature for their auctions called "Going, Going, Gone." The Going, Going, Gone" feature extends the end of an auction for 10 minutes if a bid is placed effectively creating a "soft close". For more information on the "Going, Going, Gone" feature on Amazon go here. http://www.amazon.com/exec/obidos/tg/browse/-/1161360/103-1666189-8415007#going-gone
From the buyers standpoint a "hard close" format is preferable since they may be able to make a final bid before others can react, possibly winning the auction at a lower price.
For sellers, a "soft close" format provides an opportunity to realize the maximum price for an item by removing the time restrictions for an auction. As long as bidders are bidding the auction remains open.
Dutch Auctions
As you may have guessed, the concept of the Dutch auction
originates in the Netherlands. Unlike English auctions which
utilize ascending price methods, Dutch auctions are descending
price auctions and are commonly used when multiples of the same
items are to be auctioned. In a Dutch auction the bidding starts
at a relatively high price which is driven progressively downward
by bids.
As an example of a Dutch auction let's say you had 10 items you wanted to sell for $20 each.
Bidder A bids $18 for 6 items
Bidder B bids $17 for 5 items
The final result is:
Bidder A would receive 6 items for $17 each
Bidder B would receive 4 items for $17 each
Please note that most Dutch auctions allow bidders to refuse an order for a lesser number of items than what they bid on. A "soft" or "hard close" format may be used in Dutch auctions although the most common is the "hard close".
First-price Sealed Bid Auctions
Sealed bid auctions differ from the English and Dutch in as much
as the bids are not announced to other bidders. The individual
bid is only know to the bidder and the seller. This type of
auction may be either buyer-bid, where the highest bidder wins
the item and pays the amount of their bid, or seller-bid, where
the lowest bidder sells the item and is paid the amount of the
bid. This form of auction is common for construction contracting,
military procurement, foreign exchanges, and other types of
goods.
Second-price Sealed Bid Auctions
Another common name for second-price sealed bid auctions is
Vickrey auctions (named after William Vickrey) There is a slight
variation to the first-price auction for Vickery auctions. In a
buyer-bid auction the highest bidder buys the item and pays the
amount of the second highest bid. Or in a seller-bid auction, the
lowest bidder sells the item and is paid the amount of the second
lowest bid.
The above descriptions provide a general overview of the most popular auction types in use today. Depending on the auction website these general categories may include a number of variations and options such as reserve pricing, open or closed venue, multiple items, fixed price and lot listings to mention a few. Before entering any particular type of auctions make sure you study and understand the rules for that specific type of auction, as the rules may vary from website to website.
Copyright © Steven Woodward - All Rights Reserved
Steven Woodward is the owner, editor and publisher of the Auction Sellers Network (ASN); a web site for individuals and companies who are serious about utilizing the online auction marketplace for their business. In addition to topical articles, ASN provides an extensive resource center, news feeds and member forums. For more information, or to become a member, please visit us at http://www.AuctionSellersNetwork.com
No permission is needed to reproduce an unedited copy of this article as long the About the Author tag is left in tact and included. We do request that we be informed of where it is posted and reciprocal links will be considered.
MORE RESOURCES updated Sat. December / 21 / 2024 |
|
|
RELATED AUCTION INFORMATION ARTICLES:
10 Tips to Starting a Financially Successful eBay Business Starting Right Now eBay is Perhaps the easiest and fastest way to start a home based online business. Here are 10 Tips to starting a Successful eBay Business1 - Become an eBay Shopper. Buy a Few things on eBay. Top Secret eBay Powerseller Technique: Classifieds Produce Auction Power I was browsing through all of the classified sections, and stumbled on Wanted to Buy. I noticed that people were placing ads for items they wanted to purchase. 7 Simple Steps To Profit Without Your Own Product Most people do not succeed on the internet because they are selling products no one desperately wants.If you want to be truly successful sell only things that people really really really want to buy!Sounds simple? It is. An Emerging Market in eBay Consignments: The eBay Trading Post (Part II In A Series) In 2002, the eBay consignments business was born, referred to by eBay as the Trading Assistant Program. It's possible that eBay didn't foresee just how much they would benefit form their eBay consignments program. Game Theory, Nobel Prize, & Auctions - Auction Primer Series - Part 1 William Vickrey, highly regarded as the founder of auction theory, was an economics professor at Columbia University when he published two papers outlining his views on auctions:"Counterspeculation, Auctions, and Competitive Sealed Tenders", 1961, Journal of Finance"Auction and Bidding Games", 1962, Recent Advances in Game TheoryIn 1996 he received a Nobel Prize "for fundamental contributions to the economic theory of incentives under asymmetric information." It's important to understand that asymmetric information is an essential component of auctions, where potential buyers have varying levels of knowledge about the value of the item. How To Write a Traffic Pulling eBay Auction Title Selling an item on eBay should be simple but it is surprising how many people make some very silly mistakes. As a buyer this is fantastic, you can pick up some absolute bargains by finding poorly listed items. Drop Ship Your Way to eBay Profits One of the most difficult things to do when looking to start an online business is to find that elusive supplier that will supply you, put simply you need a source of real products to sell. Drop shipping is a perfect way to achieve this and lets you develop the perfect online business. Save on eBay Fees with Free Image Hosting Experienced sellers at online auction sites such as eBay will tell you that the single most effective tool of persuasion is a good image. Multiple images are even better. How Do You Find A Reliable Dropshipping Source? A Dropshipper is someone who will anonymously send the goods you order to your customer! There are no markings on the box and no invoices enclosed! Finding a reliable dropshipper can prove to be a strenuous task. When selecting a Dropshipper you want to be sure to find someone that has a large inventory and quickly replenishes items that become sold out! You also want to find someone that is helpful and knowledgeable about the products they are selling! Make sure to contact them before you consider reselling their items, see how quickly you get a response and how helpful the response is! Remember this is the same service you can expect once you are in business with them! If it is less than your standards consider using someone else! How do you find a Dropshipper? There are several ways to find a Dropshipper perhaps the easiest is to purchase a list from an online auction! Thoroughly read the context of the ad and ask questions if need be. Online Auctions: 5 Ways Your Business Can Benefit From Online Auctions Online auctions are now the new gold rush on the internet. It seems as if everyone is talking about online auctions. When You Need Extra Cash eBay Fits the Bill We all have items in our closets and stuffed in drawers that we no longer have a use for. Some of us use our free time to manufacture craft items that we give to our friends and families for gifts, and still others of us buy candles and other items in bulk to sell to family and co workers for a little extra cash. How to Double or Even Triple Your Net Profit Selling on eBay eBay Search tips and secretsThis is an example of how I used the eBay search tab to triple my sales and profit in 1 month!I had found a great supplier of computer liquidation products using my eBay Power seller Cloning techniques. I was excited to be selling over $1000 a day in these products (laptop parts and accessories). Join the Home-Based Business Revolution Greetings, Friend. So you've decided to go into business. 5 Sure-Fire Ways to Make More Money on eBay Have you ever dealt with a salesperson or a waiter who gave you unbelievably good service? How about someone who didn't seem to care about you one bit?Which of those people would you go back to the next time you needed to make another purchase or eat another meal?I'm willing to bet you would go back to the business or person who gave you great service. Have you ever considered that this same principle applies to your eBay sales?One of the easiest ways to get more sales on eBay is to make every buyer think "Wow, I've never had such a good experience buying on eBay!"Once someone has bought from you and had a good experience, they're much more likely to buy from you again. eBay is the Greatest Opportunity YOU Have to Create a Career Online eBay's being spoken about everywhere these days. At work, school, down the pub. The Secret To Real eBay Success Q. I hear so much about people who started selling on eBay and eventually turned it into their full time business. Internet Auction Sites : Find Good Deals on Almost Anything You can find good deals on almost everything you need on internet auction sites. There is almost nothing that you can't find over the internet. eBay - Tapping Into The Japanese Collector Market If you owned a skateboard shop in your local mall would you put a big sign in the window saying "No Baggy Pants Allowed"? Of course not. If you did you would be eliminating 50% or more of your most avid potential customers. How to Survive the Jungles of eBay Selling Come with me, we are going to take a safari into the jungles of eBay selling, sometimes wrought with danger but most often rewarded with treasure.Beware of non-paying bidders, beware of auction snipers waiting to try and steal your eBay auction at a very low bid, but welcome the loot you will receive selling outdated relics in your house for a small kings ransom. eBay Motors : Buy or Sell a Car on eBay Are you having trouble finding a great deal on a car in your local area? Well, join the club. Using Online Bidding at eBay Motors can be the perfect answer you've been looking for.
|
||||||||
|
|
|
 |
|
Here
Find used office equipment in Ohio at www.OfficeJax.Has.It Find the best fleamarkets at www.FleaMarketWorld.Has.It Find electric powered vehicles at www.NoGas.Drives.It Surplus Outlet Directory 5th Avenue Flea market Find homes for rent
|
Surplus Overstock and used PET SUPPLIES buy arts and crafts supplies below wholesale in Akron, Ohio university of akron university housing available Find unclaimed freight in Akron Ohio
|
[Back to Top]
online shopping
Triplet jeweler's loop's
Akron crafts and hobby news center Advertising and promotions Akron, Ohio The Akron blogging news center Akron Ohio web site design news Akron Mortgaging and refinancing auction Akron Ohio auctions Akron Ohio
auction news and listings for Akron, Ohio Rosier's Auction
|
|
|||
|
