Auction Theory

This theory finds its origins in field of economics. It is said to
be an applied branch of the very same field. In this theory,
many ways in which people act in auctions are included. This
theory also describes properties possessed by auction markets.
An auction may follow a certain rule or set of multiple rules.
Such sets of rules are known as auction designs. These designs
are also a part of this particular theory. Auction theory is said
to be a representation of a standard and utilized design for
real life auctions. This theory particularly targets auction designs
for public sector companies and the use of sale of license.
Some main parts of this broad theory about auctions may also
include the following:
Efficiency
Optimal bidding strategies
Revenue comparison
Every individual that is familiar with economics or is building up
his career in the field of economy or corporate is most likely
to be very much familiar with the term auction. Auction is
indeed a simpler term to understand. Main goal of auction is
to put an effort to sell selective stuff at a most convincing and
affordable rate according to sellers prospective. This statement
can be said most simple definition for auction. According to a
more descriptive and professional definition, Auction is a public
or private sale (In many cases) in which the sellers makes a
deal with the bidder that offers highest amount for the
respective stuff. Some experts also consider that auction can be
called a system for selling since it is holds a well-structured
format. According to this theory or concept, the definition for
auction is, 'It is a system, in which competitive bids from
potential buyers are placed on stuffs that is put for sale. The
selling item can be a property or even goods. The goods are
handed over to the highest bidder in exchange of the price
that he previously offered for the very same item. Both seller
and buyer [in most cases it is seller only] have to pay a small
fee to the auctioneer for listing the item. Usually, sellers pays
the fees for listing the item in particular auction and buyer
pays entry fees o get the right to bid from the auctioneer.
Once the deal has been finalized or bids have put on the item,
seller have no right to refuse to pay the fees in any terms, not
even if the item is not sold at a desired price or revenue.
Most of the modern auctioneers make a legal contract with
both sellers and bidders so they are not caught in such
situation where buyer and sellers make a deal and refuse to
pay fees for their services or intermediation, whatever it is
called.
All the concepts that are related to auction in any way are
included in Auction theory. Like any other theories, it explains
all terms related to the field while making sure that the
description is much likely related to the main subject.