Google
Sunday 
January 21, 2018 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
WILDCAT STRIKE: An unofficial and usually spontaneous strike or work stoppage by union members. A wildcat strike is not authorized by the labor union representing the workers. Such strikes generally occur because (1) labor has specific problems or concerns that have not been satisfactorily addressed by employers or (2) workers feel that union leaders are not acting in the best interest of the union members. This is also termed an outlaw strike.

Visit the GLOSS*arama


AUCTION:

A formal market exchange in which prospective buyers make bids to purchase a commodity. An auction is an effective way of exchanging commodities by bringing together buyers and sellers. Auctions are commonly used to exchange financial instruments, agricultural commodities, personal assets, and works of art. Three notable types of auctions are English, Dutch, and sealed-bid.
An auction is an effective way of exchanging commodities, usually bringing together buyers and sellers to the same location at the same time. In some cases, the auction participants are physically in the same room. In other cases, only the bids are brought together, such as with Internet auctions.

Three Types

Auctions have been used for over 2000 years. Given this lengthy history, a number of types of auctions have been developed. The three most common types are English, Dutch, and sealed-bid.
  • English: This is an auction in which the price is set at a relatively low amount, then prospective buyers offer incrementally higher bids until no one bids higher. Highest bidder buys the commodity. This is the most common type of auction. Agricultural commodities and personal assets are commonly sold using the English auction. Internet auctions are an increasingly popular form of the English auction. The English auction allows sellers to extract the highest sale price from available bidders.

  • Dutch: This is an auction in which the price is initially set at a relatively high amount, then sequentially decreased until a buyer agrees to make the purchase. The first person agreeing to the price makes the purchase. Dutch auctions are most commonly used for and associated with the sale of Dutch tulips (hence the name).

  • Sealed Bid: This is an auction in which prospective buyers submit secret, or sealed, bids for a commodity. Once submitted, the bids cannot be changed. Because the bids are secret, one prospective buyer is unlikely to know the bids of the others. The buyer with the highest bid makes the purchase. Financial instruments, especially U.S. Government Treasury Securities, are commonly sold using sealed bid auctions.

Other Variations

Given the history of auctions, a number of other variations have been theoretically suggested and occasionally attempted.

One variation is the theoretical Walrasian tatonnement. In this auction format a hypothetical auctioneer matches up demand prices and supply prices until the quantity demanded balances out quantity supplied and the market achieves equilibrium.

With a Vickrey auction the winning bidder pays the second highest bid price. A variation of the Vickrey auction is commonly used on Internet auction sites in which the winning bid is automatically incremented slightly above the second highest bid.

A fixed-price auction is one in which the seller posts the price of the commodity, then the first person willing to pay that price makes the purchase. Used cars are often informally sold by individuals in this manner.

<= ASYMMETRIC INFORMATIONAUTOMATIC STABILIZERS =>


Recommended Citation:

AUCTION, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2018. [Accessed: January 21, 2018].


Check Out These Related Terms...

     | rationing | price rationing | resource allocation | voluntary exchange | involuntary exchange |


Or For A Little Background...

     | market | competition | demand price | supply price | exchange | price | incentive | ownership and control |


And For Further Study...

     | competitive market | consumer sovereignty | consumer surplus | producer surplus | three questions of allocation | invisible hand | market clearing | market efficiency | rational behavior |


Related Websites (Will Open in New Window)...

     | Sotheby's | Christie's |


Search Again?

Back to the WEB*pedia


APLS

YELLOW CHIPPEROON
[What's This?]

Today, you are likely to spend a great deal of time at a garage sale hoping to buy either a coffee cup commemorating the 1960 Presidential election or a how-to book on fixing your computer, with illustrations. Be on the lookout for small children selling products door-to-door.
Your Complete Scope

This isn't me! What am I?

One of the largest markets for gold in the United States is the manufacturing of class rings.
"The more you praise and celebrate your life, the more there is in life to celebrate."

-- Oprah Winfrey

IRS
Internal Revenue Service
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2018 AmosWEB*LLC
Send comments or questions to: WebMaster