Auction

An auction is a public sale in which goods, property, or services are offered for competitive bidding and typically sold to the highest bidder.

An auction is a public sale where goods or services are sold to the highest bidder through competitive bidding. It is a common method in commerce, real estate, and finance.

What it is

An auction is a sale method where buyers compete by placing bids, and the item is awarded to the highest bidder. Dictionaries describe it as a public sale with increasing offers until the sale concludes. The term also refers to the bidding phase in some card games like bridge.

How it works

In a traditional auction, bidders raise offers until no higher bids are made, then the auctioneer accepts the final bid. Some auctions have a reserve price—a minimum that must be met—while others are without reserve, meaning the item sells regardless of the price. Auctions can be live, online, or hybrid.

Why it matters

Auctions are a key economic mechanism for pricing scarce or unique goods through open competition. They are used in Canada for real estate, vehicles, art, livestock, and government sales. Auction theory studies how different formats affect bidder behaviour and outcomes.