Auction

Definition

Auction is a market making process where different parties participating under defined rules in establishing a Price for the exchange of a Good or service via bids.

Variations

• Public versus Private depending on the accesibility to various parties
• Different auction designs depending on the rules of bidding and establishing the winning bid.
  • Dutch Auction
• Court Auction (when the auction process is mandatory as the result of Foreclosure or other Enforcement of Collateral