Auctions are market mechanisms where goods or services are sold to the highest bidder.
Bidders compete openly, submitting successively higher bids until the auction’s conclusion. Various auction formats exist, such as ascending (English), descending (Dutch), or sealed-bid auctions.
Auctions are used in diverse contexts, from art sales to government procurement.
They provide an efficient way to establish fair market prices and allocate resources based on demand, creating a transparent and competitive environment for buyers and sellers.