AUCTION

the buying and selling of real and personal property through open public bidding. The traditional auction process involves a succession of increasing bids or offers by potential purchasers until the highest (and final) bid is accepted by the auctioneer (who is usually an agent of the seller). At a so-called Dutch auction, however, the seller offers property at successively lower prices until one of his offers is accepted or until the price drops so low as to force the withdrawal of the offered property. Prospective buyers are usually permitted to examine the items for sale beforehand. The inspection period enables buyers to evaluate various lots, determine comparative grades or qualities, and arrive at a reasonable price to offer at auction time. Before the auction itself, the seller can set a reserve, i.e., a minimum price below which the property will not be sold. If bidding does not meet the reserve, the auctioneer may withdraw the property without accepting the highest bid. Auctions are an important part of selling operations in the agricultural markets of many countries, for they have traditionally provided a rapid and effective means of disposing of goods, especially perishable products. In the United States, for instance, the loose-leaf tobacco auction has been a fairly constant method for the purchase and sale of tobacco. Other items that are frequently sold at auction include secondhand household goods, used agricultural machinery, artworks and antiques, stamps and old coins, rare books, and jewelry. Auctions are also sometimes used to sell real property such as farms and buildings that have been repossessed by financial institutions or by the government. Auction selling is also employed on stock and commodity exchanges. Aside from commodities and real estate, auctions historically served as a means for transferring ownership of slaves. There are evidences of slave auctions in the history of ancient Greece from as far back as the Homeric period. The practice persisted through the Roman Empire and into the early period of Christianity and was revived after the decline of serfdom in the late European Middle Ages. Slaves brought to the American colonies in the 18th and 19th centuries were frequently sold at auction to planters. In the late 20th century, artworks and antiques were the most prominent and profitable commodities sold at auction because of a spectacular rise in art prices. Two of the world's largest art auction houses are Christie's and Sotheby's (qq.v.).