WHAT IS AUCTION ? GOVERNMENT E-PORTEL FOR AUCTION.
Updated on : 2020-Dec-16 17:20:20 | Author :
WHAT IS AUCTION?
The auction could be a method of shopping for and mercantilism product or services by giving them up for bid, taking bids then mercantilism the item to the best bidder or shopping for an item from the lowest bidder. The method starts by tempting multiple patrons to the auction. Associate in nursing auction is Associate in nursing economic mechanism whose purpose is that the allocation of products and formation of costs for those goods via a technique referred to as bidding. William Vickrey established the taxonomy of auctions supported the order within which the auctioneer quotes costs and therefore the bidders tender their bids.
TYPES OF AUCTIONS:
Mainly there are two types of auctions. As-
1. Primary types of auction and
2. Secondary types of auction
1. Primary types of auction:
English auction (ASCENDING pricing auction)
The auction ends when no participant is willing to bid no more, at which point the highest bidder pays their bid.
Dutch Auction ( DESCENDING price auction )
In this case, the auctioneer begins with a high value that is lowered till any participant is willing to simply accept the auctioneer's price.
Sealed first-price auction (first-price sealed-bid auction)
In this auction, all bidders simultaneously submit sealed bids so that no bidders know the bid amount of any other bidder.
Vickrey's auction (second-price sealed-bid auction)
This type is identical to first-price sealed-bid auction except that the winning bidder pays the second-highest bid rather than their own.
Vickrey auction is rarely used in practice.
2. Secondary types of auction:
All –pay the auction
In this type of auction, all bidders must pay their bids regardless of whatever they win. The highest bidder wins the item. It is used primarily of academic interest or competitions as a running race.
Buyout auction
Any bidder can accept a fixed amount any time during the auction, that’s why auction ends immediately and wins the item.
Combinatorial auction
Any auction for the simultaneous sale of more than one item where bidders can place bids on an “all or nothing” basis on packages other than just individual items.
Non-reserve auction (absolute auction)
The item for sale will be sold at an unjustified price. A bargain is done directly between the seller and the buyer. More bidder causes more selling price.
GOVERNMENT E-PORTAL FOR AUCTION:
Portal Policies:
Government Auctions System (eauction.gov.in)
On this page, you shall notice info concerning varied Auction Documents issued by the govt.
Departments, Directorates, Statutory Organizations, native bodies, Undertakings / Boards.
This Service is being provided by the Government in association with the National information science Centre (NIC) to facilitate quicker dissemination and simple access to info associated with Auctions.
However, the Auctions area unit closely-held, printed and maintained by the involved Government Departments.
The Auction business enterprise Authorities of assorted Departments area unit chargeable for their accuracy, credibleness and validity.
In case of doubt or question, users area unit requested to ask the initial Auction notification document and contact the individual Department / Organization.
DIFFERENCE BETWEEN TENDER AND AUCTION:
1. A tender (where people submit their offer in writing, which are all compared on the closing date)
An auction is where everyone bids against each other on the given auction date.
2. Tenders are sealed bids that are submitted directly to the seller. Then the seller will pick the winning bid at the end of the sale. All tenders end at the same time. Buyers cannot see any other offers that have been made. Buyers can submit more than one bid but cannot withdraw a bid once it has been submitted. All the lots will end at the same time.
Auction is a sale where the products are given to the highest bidder. Buyers can present bids up to the deadline of the particular auction. Some lots may be extended through the bidding process. The bids are open so buyers can see what the current highest bid on the equipment they are bidding on.
ADDITIONAL RESOURCES:
