Auction trade is a type of wholesale and retail trade in which the seller, wanting to make a profit, uses the principle of direct competition between several buyers simultaneously present during the sale.

Auction (from the Latin auctio) is the sale at public auction of goods that have individual properties and values. Their sale is carried out by public auction in a certain place at a certain place and at a predetermined time. Worst J., Reventlow P. Economics of the firm. - M.: graduate School, 2008. - p. 22

Auctions as a form of organizing the sale of commodity and other valuables on the principle of “who has more” are commodity and currency, the main participants in the auction are: the owner of the valuables (seller), the auction organizer, the buyer. Auction sales are conducted by an auctioneer, who has the authority to announce prices during the auction and the buyer who offered the highest price.

Commodity auctions sell works of art, jewelry, furs, antiques and other unique, rarely seen and in high demand goods and other valuables. Auctions usually involve raising or lowering prices in an open or unspoken form.

In a so-called public auction, when the price increases, bidding begins after the announcement of the minimum price set by the seller. Buyers then make voluntary increases to the final purchase price, which stop after the third blow of the auctioneer's hammer, announcing the buyer's number and final price.

The initial price is determined in the agreement between the auction organizer and the owner of the goods.

In a silent auction, buyers submit to the auctioneer in advance installed signs agreement to raise the price. The auctioneer announces a new price each time without naming the buyer. A secret auction allows you to keep the name of the buyer secret. Gerchikova I.N. Management and international commercial affairs. - M.: VLADOS, 2008. - p. 48

During an auction sale, the auctioneer is not responsible for the goods sold, since buyers have the opportunity to familiarize themselves with them in sufficient detail before the auction.

Auctions can also be held to reduce prices, so-called Dutch auctions. In some countries, auctions use a downward pricing method. These are the so-called “Dutch” auctions. The essence of this method is as follows. The auctioneer sets a maximum price, which lights up on a dial installed in the auction room, and lowers it until one of the bidders expresses his desire to make a deal by pressing a button on his assigned seat. By pressing a button, he stops the moving arrow, and the number under which the buyer is registered with the auction organizers appears on the dial. The buyer who presses the button after the first one will not be counted. Having written down the buyer's number, the auctioneer turns off the dial and moves on to selling the next lot. The use of such a device significantly speeds up the pace of auction trading and makes it possible to sell up to 600 lots per hour. This auction system is widely used when conducting auctions for the sale of vegetables, fruits and fish. In Holland this mechanized system is used for 150 auctions. In addition, it is widely used in Denmark, Germany and Belgium and in to a lesser extent- in France, Italy and Canada. This system, although widely used, does not comply with the basic principle of auction trading, namely: transfer of goods to the disposal of the buyer who offered the highest price as a result of the auction. With this system, there is virtually no bargaining between buyers.

An example of such an auction is a flower auction in Aalsmeer (Netherlands). From Monday to Friday, by eight o'clock in the morning, large quantities of flowers arrive, the sale of which is carried out in five large halls at once. Flowers move along a conveyor through the entire hall. Wholesale buyers sit at specially equipped tables located in an amphitheater. In front of each there is a button connected to a large dial hanging on the opposite wall, on which the arrow moves from the maximum to the minimum price. As the conveyor with the lots of flowers being sold moves, the arrow also moves. A matter of seconds is given to make a decision. Whoever presses the button first gets the right to flowers.

The purchase is recorded and processed by computer in 10-15 minutes - from pressing a button to issuing an invoice. Along the same conveyor, the flowers go to the next hall, where they are quickly packed and immediately delivered in refrigerators to their destination - the airport or store. Unsold flowers go into compost. Every year in Aalsmeer, during four hours of operation, 900 million roses, 250 million tulips, 220 million other potted flowers, etc. are sold, a total of more than 3 billion pieces. In general, in the Netherlands there are more than 6 billion flowers at 12 specialized auctions. Approximately 80% of them go to countries such as Australia, Singapore and Japan. Overall, the Netherlands' share of the international flower trade is over 60%, placing it firmly at the top of the world in this regard.

The essence of the participation of commercial banks in credit auctions is their receipt of margin, i.e. the difference between the purchase price of resources and their further resale in the form of a loan to customers. Only head offices of banks that comply with all requirements are allowed to participate in credit auctions held by the Central Bank of the Russian Federation. necessary requirements Central Bank. The Central Bank of the Russian Federation allows various ways organizing auctions - according to the American method, the Dutch method and with a fixed price interest rate. Solovyova A.V. Retail. - M.: PHOENIX, 2008. - p. 62

Under the American method, applications from participating banks are ranked by the level of the proposed interest rate in descending order, and then satisfied in the same order, starting with the maximum proposed interest rate until the volume of credit established at this auction is completely exhausted. As a result, the amount of the last accepted application may be reduced.

With the Dutch method, all applications are satisfied at the cut-off price - minimum rate, which is offered by banks that are among the buyers.

In the case of an auction with a fixed interest rate, all applications are satisfied, but if the total amount of these applications exceeds the volume of the loan offered for the auction, all applications are partially satisfied. The degree of satisfaction of applications corresponds to the ratio of the total volume of auction credit to their total amount.

Through credit auctions, the Central Bank of the Russian Federation democratized the process of distributing centralized credit resources, providing the opportunity to all commercial banks that meet established requirements to become auction loan buyers. An analysis of the situation in the credit market following the auction allows us to reasonably adjust the level of discount rate The Central Bank of the Russian Federation, the conditions for subsequent auctions and the need to maneuver other instruments of monetary regulation.

As a result, we can say that there is enough large number auctions, which include “English”, “Dutch”, public, secret, credit, etc.

Most of the uninitiated people believe that an auction is an open auction of various valuable items: collectibles and antiques, samples high art, precious items. But in reality, the auction bidding procedure can be used to conclude contracts for the sale and purchase of goods for a wide variety of purposes. For example, in international practice, auction sales of coffee, tea, valuable furs, other raw materials and finished goods are common.

The types and concept of an auction in Russia are similar to the concepts generally accepted in world trade. At the same time, Russian laws regulate the list of goods prohibited for sale through auctions. In this regard, entrepreneurs intending to purchase goods subject to duties and taxes through auctions should seek the services of appropriate specialists. These are professional lawyers working in the field of business and taxation.

All over the world there are specialized auctions that sell certain types of goods. Thus, the most famous trading auction houses that have become famous all over the world - Sotheby's and Christie's - specialize in the sale of antiques, jewelry and art objects.

In addition to what is generally accepted in the world trading practices the concept of “auction trading”, in Russian legislation this term has a legal meaning regulated by the relevant provisions and articles of regulations.

The Russian Civil Code defines the term “auction” as one of the types of public trading. In accordance with this code, all organizers and participants of auctions are subjects of legal relations with corresponding rights and obligations.

The types and concept of an auction in Russia contain the following provisions that determine its nature:

• Open auctions are held in the presence of all persons wishing to take part in them.
• Closed auction - only a certain circle of people specially invited by the auction organizers are allowed to participate in it.

The most common form of auctions in our country is open electronic trading, which will be discussed below. Auction organizers bear certain obligations towards potential buyers. This is a public notice of an auction in the event open bidding, or an individual invitation for a closed sales form.

Organizers are also obliged to compensate participants in closed auctions for all damage incurred in the event of sales failure due to the fault of the organizer. On the day of the auction, the organizers must organize the signing of a protocol formalizing the sales results. For the right legal registration The auction will require the assistance of professional lawyers in the field of licensing.

According to the Civil Code, each auction participant must make a deposit, the monetary amount of which is indicated in the notice of sale. In addition, they sign an official protocol documenting the results of the auction.

The deposit paid is returned to all participants in the event of cancellation of the auction. Also, all participants who do not win the auction have the right to a refund of the deposit.
The concept of “auction” in other legal acts

The term "auction" also appears in federal law regulating the placement of state and municipal orders for various works, supply of goods, provision of services - the so-called “government procurement”.

In the mentioned law, the term “auction” means holding a competition for the right to conclude an official contract with representatives of state and municipal bodies. At the same time, the winners in this competition Usually the person who offers the lowest cost for the services offered is recognized.

Auction documentation strictly regulates the application form for a person wishing to take part in this event. The official application must contain a package of supporting documentation, which includes the necessary licenses, approvals and permits to carry out work or provide services. This provision is relevant only in cases where the contract provides for mandatory licensing of the work performed. Failure to comply with the stated standards, as well as other violations during its preparation, may result in refusal of admission to trading.

Persons wishing to organize auction sales or take part in them should take into account that additions and changes are often made to the relevant legislative acts. Thus, since the beginning of 2014, the previous law on public procurement has lost its force due to the adoption of a new Federal Law, according to which new provisions are established in the field of holding competitions among suppliers of goods and services for the needs of the state and municipalities.

The electronic form of auction trading has begun to actively develop in Russian Federation simultaneously with the development of computer technology, in particular the Internet space. The main feature of online trading is its remote form using specialized websites and electronic platforms.

This form of auction sales is much more convenient than traditional types— with the direct presence of participants in the premises where the auction is being held. In order to participate in electronic auction potential buyers, as well as organizers, do not need to leave their offices or homes.

In Russia, the types and concept of auctions held using online platforms can be as follows:

• Raising trades. In this case, the winner of the competition is the participant who offers the highest price. A similar form is used when concluding ordinary purchase and sale transactions.
• Short bidding is when the participant with the lowest price wins the competition. It is used when concluding various contracts, including in the field of government procurement.

Most electronic orders placed government agencies and municipalities, according to the law, take the form of an auction to reduce the offered price.

Persons wishing to take part in online auctions conducted via the Internet should take the most responsible approach to the execution and preparation of official applications. All the nuances and features of this procedure are stipulated in the regulations and tendering regulations.

According to civil code, not only the organizers, but also the auction participants have certain obligations. Therefore, in order to avoid possible financial risks, save your energy and time, before deciding to participate in the auction, you should consult with qualified specialists in the field of finance and law.

Types of auctions

auctio, but translates it as “sale by public auction.” There are references to Lat. augēre(increase) and in lat. auctionis(increasing).

Auction items

In the form of an auction, trade in goods that have individual characteristics and properties is carried out. This excludes the possibility of replacing batches of goods with the same name, since they may have various properties: appearance, quality, taste, etc. The main goods that are offered and bought at international auctions:

fur products (raw and processed), unwashed wool, tea, tobacco, flowers, vegetables, fruits, tropical forests, horses, fish, used cars, used and new mobile devices, other consumer goods and commodities.

Auctions also sell goods that have unique properties: works of art, historical rarities, collectibles, antiques.

Various financial assets can also be sold at auctions: shares, bonds, etc.

During the transition period in Russian economy The most widespread are auctions for the sale of enterprises in the process of privatization, specialized auctions for the sale of shares of privatized enterprises transformed into joint-stock companies, and for the sale of property of bankrupt enterprises for settlements with creditors.

Auction trading centers

About 70% of the tea sold on the world market and 90-95% of the unwashed wool exported by Australia and New Zealand are sold through international auctions.

Historically, each auction item has its own auction trading centers.

For furs and fur raw materials, the main centers of trade are: St. Petersburg, New York, Montreal, London, Leipzig, Copenhagen, Oslo, Stockholm and some others. In total, over 150 international fur auctions are held in the world.

The most important centers where the unwashed wool trade takes place are London, Liverpool, Sydney, Melbourne, Cape Town, Wellington (New Zealand).

The flower trade is concentrated in the Netherlands, where a system of flower auctions is constantly operating in several cities.

The auction trade in tea is characterized by auctions being closer to the places of production of this product. About 70% of India's tea exports are sold in Kolkata and Cochin. In Colombo, Sri Lanka also sells 70% of its exported tea. African countries(Kenya, Tanzania, Uganda, etc.) the vast majority of exported tea is sold through auctions in Nairobi and Malawi. World fame acquired a tea auction in Singapore, where companies from Japan, Australia, China, and DNA take part. Tea produced in Indonesia, as well as in India and Sri Lanka, is sold through auctions in London, Hamburg, and Antwerp.

The most important centers of tobacco trade are New York, Amsterdam, Bremen, Lusaka, Zambia); flowers - Amsterdam, Aalsmeer; vegetables and fruits - Antwerp and Amsterdam; horses - Deauville (France), London, Uspenskoye (near Moscow).

Auction house

The most famous auction houses specializing in works of art and antiques:

Russian auction houses:

• Russian auction house
• Cabinet
• Gelos
• Conros
• Auction Competitive House

Organization of auction trade

Organizers of commodity auctions can be individual large trading companies, unions or associations of sellers, or special auction brokerage firms.

Specialized large firms acting as auction organizers, representing trade monopolies, offer at auctions goods purchased, as a rule, at their own expense. At the same time, they accept for sale on a commission basis products belonging to manufacturing companies, associations or cooperatives of farmers.

An example of such a company is the specialized English fur company Hudson Bay, which has actually turned into an international monopoly with branches in New York, Montreal, and London. Another large specialized company for the sale of furs is the American company New York Mink Co., Inc., which organizes auctions for the sale of mink in New York. In addition, it has branches in Montreal and Minnesota, where mink auctions are also held.

Unions (associations) of producers and farmers, acting as auction organizers, often create auction firms for this purpose. This is most common in the fur trade in Scandinavian countries(Norway, Finland) and Denmark. This kind of auction is held, for example, in Copenhagen.

Specialized auction brokerage and commission firms play a leading role in the trade of tea, wool, tobacco, fur products and other goods. They usually organize auctions and sell goods on behalf of their clients for a commission. For example, more than 90% of the auction trade in unwashed wool in Australia and New Zealand is carried out by brokerage firms. Transactions at these auctions are carried out through the seller's brokers and the buyer's brokers. All wool auction brokers in Australia and New Zealand are organized into Seller's Broker and Buyer's Broker Associations.

Auction trade in tea both in tea-producing countries and in London is concentrated mainly in the hands of English brokerage firms or their branches and subsidiaries. Sometimes they buy the goods themselves and act as the owners of the goods at auctions, but more often they sell tea on a commission basis (farmers - tea producers - are not allowed to participate in auctions).

Auction trading technique

The auctioneer and his assistants demonstrate goods during the auction process

From the point of view of price setting techniques, two types of auctions are distinguished:

The organization and technique of conducting international auctions have their own characteristics, which are determined by the nature of the goods. However, their organization has much in common; there are four stages of auctions:

1. Preparation,
2. inspection of goods,
3. auction trade,
4. registration and execution of the auction transaction.

During auction preparation, which sometimes lasts several months, the owner of the goods delivers it to the warehouse of the auction organizer. During the preparatory period, catalogs are compiled, advertising activities are carried out, large quantities of goods are divided into so-called lots. Goods of equal quality are selected for the lot. Each lot is assigned a number under which it is entered in the catalog of this auction indicating the characteristics of the lot. Several lots with the same quality indicators form the so-called thongs. A representative sample is selected from each lot or string and displayed in a special room for inspection.

During inspection of goods Potential buyers have the opportunity to view the lots and thongs offered for sale. At auctions of food products, tastings are organized for buyers. Inspection is important stage holding auctions, since if a product is purchased, claims to its quality (with the exception of hidden defects that cannot be detected during inspection of the product) are subsequently not accepted. Sometimes, during the inspection, buyers can purchase samples of goods to further check their quality.

The main stage of the auction is bargaining, which is conducted by the auctioneer together with assistants. It begins on a predetermined day and time in a specially equipped room. There are ways to increase prices - public and secret.

With the public method, the auctioneer announces the number of the lot being put up for sale, names the starting price and asks: “Who has more?” A buyer who wants to purchase a lot at a higher price names a new price, which is higher than the previous one by an amount not lower than the minimum premium specified in the auction rules. The auctioneer calls the buyer number under which he is registered at the auction, the new price of the lot and again asks the question: “Who is more?” If after repeating the question three times there is no new offer, the auctioneer hits the gavel, confirming the sale of the lot to the buyer who last named the highest price.

With the secret method, buyers give the auctioneer a conventional sign (for example, by raising a sign with his number) that they agree to raise the price. The price premium is standard and specified in the bidding rules. The auctioneer announces a new price each time without naming the buyer.

The pace of auction bidding is very high and requires buyers and auctioneers to maximum attention and quick response. On average, it takes less than 50 seconds to sell one lot. In some countries, auctions use a price reduction method. This method is called the “Dutch auction”, as it is widely used in this country. Its essence is that first the auctioneer sets the maximum price, which lights up on a dial set in auction room. If none of the buyers expresses a desire to purchase the lot at this price, then the auctioneer begins to reduce the price. The buyer of the product is the one who first presses the button in front of him, which stops the price change on the dial. After this, the number under which this buyer is registered with the auction organizers lights up on the dial. He is considered the buyer of this lot. This method of conducting an auction significantly speeds up the pace of auction trading and makes it possible to sell up to 600 lots per hour.

Types of auctions

• by type of initiative: forced (sale of confiscated goods for one reason or another) legal grounds property) and voluntary auctions (held at the initiative of the seller himself).
• by composition of participants: open (everyone can take part) and closed (only persons specially invited by the auction organizer can take part).

Auction types

• An open auction is an auction during which participants see the bids of all their opponents. The classic example is English. open auction.
• A closed auction is an auction during which participants do not see their opponents' bids and cannot change their bids. Applications are submitted closed (in envelopes) - each participant directly, without publicly disclosing, informs the auctioneer the size of his bid. An example is privatization auctions in Russia.
  • First price auction is a closed auction in which the winner is the bidder with the highest price and it is this price that must be paid. Typically, sealed auctions are first price auctions.
  • A second price auction is a closed auction in which the winner is the bidder with the highest price, but he must pay the “second price,” that is, the price of his closest competitor. Today it is not widely used.
• A double auction is a generalized form of an auction that denotes a situation where more than one seller and more than one buyer participate in it, simultaneously communicating their bids to the auctioneer, who then determines the equilibrium price at which transactions are made between sellers and buyers whose bids were no worse than this price .

Industry auctions

• Forest auction - in the Russian Federation - a form of public sale of the right to short-term use of a forest area. A forest auction is a way to identify forest users.
• German wine auctions are annual auctions for the sale of Rhine wine in Germany.
• A real estate auction is an auction at which commercial and residential real estate is sold.

Auction terminology

• Auctioneer is the organizer of the auction.
• Auctioneer is a party that transfers a product to the auctioneer under a contract for its subsequent sale at auction.
• Auction house.
• Lot is the basic unit of trading at an auction. A lot consists of one or more items, items, or sets of similar quality. Each lot is assigned serial number and its own auction price is set during the auction.
• Bargain.
• Estimate is an approximate estimate of the cost of a lot by auction house experts, a conditional price guide.

Literature

Strovsky L. E., Kazantsev S. K., Parshina E. A. et al. Foreign economic activity of an enterprise: Textbook for universities - M: UNITY-DANA, 2004, p.661-666 ISBN 5-238-00291-2

Notes

See also

Links

• // Encyclopedic Dictionary of Brockhaus and Efron: In 86 volumes (82 volumes and 4 additional ones). - St. Petersburg. , 1890-1907.

Wikimedia Foundation. 2010.

Synonyms:

There are currently several operating in the Russian Federation trading platforms organizing public sales - auctions, including online auctions, at which potential buyers are informed about the opportunity to buy or sell various types property: objects, property rights, rights of claim, accounts receivable, accounts payable, shares, shares in the authorized capital.

Most common auctions:
• car auctions(auto auction), auction of special equipment, auction of motorcycles and other transport (water, air, rail);
• real estate auctions(apartments, country and commercial), as well as land auctions (land auctions);
• property auctions(equipment, coins, paintings, antiques, government auctions);
• auctions lease rights and the right to conclude a contract, auction for supply or procurement.

Various types of sale of property and property rights are possible, depending on the presence of encumbrances ( bail, arrest, restriction of registration actions) and stages of implementation: monitoring(accepting offers from interested buyers, followed by determining the initial sale price of the property) - the so-called "pre-sale"— studying the demand for property, with a parallel assessment, in cases where the assessment is required; extrajudicial (voluntary) sale collateral or non-collateral property; sale of property by bailiffs as part of enforcement proceedings, through auction or commission (commission agreement); sale of property at auctions (auctions).

Depending on the decision made by the bank and the borrower, the leasing or insurance company, arbitration managers and various legal entities it is possible to determine the most effective system for selling property.

We invite you to familiarize yourself with information about Auctions (bidding).

Auction Definition

Auction(from lat. auctio - “multiplication” or "sale by public auction") - public sale of goods, securities, enterprise property, works of art and other objects, which is carried out according to pre-established auction rules.

Auction form. Participation in the auction

It all starts with providing necessary documents. Depending on the type of property put up for auction, the sets of documents may differ. For example, for holding an auction for the sale of real estate is necessary provide: a certificate of ownership, a purchase and sale agreement or a lease agreement, as well as other documents on the basis of which ownership rights arose; cadastral passport, extract and Unified state register rights to real estate and transactions with it, certificates of the absence or presence of encumbrances; description of the object and other documents characterizing the material and technical condition of the object (utility agreements, payment reconciliations, lease agreements, etc.). After submitting documents through an appraisal, the seller is recommended a starting bid price. Next, the main conditions of the auction are agreed upon.

Worldwide experience in holding auctions shows that in the process of holding auctions for investment-attractive objects, with the condition of setting the initial sales price that is most attractive to potential buyers of the property, the auction may exceed the possible upper level of the market price of the property. After the condition, the auction step and the size of the deposit paid by the participants are agreed upon. In conclusion, the system (type) of the auction and the date of the auction are agreed upon.

Types of auction

There are several main types of auctions in the bidding system - an auction according to the English system and an auction according to Dutch system holding auctions.

English system (English auction)- an auction in which a minimum initial price is set, and during the bidding process the price gradually increases. The final price is formed during the auction and is determined as the last maximum offered by the participants. This happens by raising the card by the auction participant for the price announced by the auction organizer. When the person conducting the auction has identified the first participant to raise the card, the price of the lot increases by one step. The auction step is specified in the auction conditions. The end of the auction occurs after three announcements by the auctioneer (the person conducting the auction) of the price of the lot and after that none of the persons participating in the auction offers a higher price by raising a card with an increase in the price of the lot by one step. The winner of the auction is the auction participant who offers the highest price. Failed auction(auction) are recognized if none of the participants agreed to pay the starting price for the lot. In this case, the auction (bidding) is terminated, and the organizer of the bidding (auction) declares it invalid.

Dutch system (Dutch auction)- an auction in which the seller determines the so-called cut-off price (the lower limit of the cost of the lot; below this limit he will not sell the lot). In such a system, options for increasing or decreasing can be used, namely, if at the beginning of the bidding (auction) one of the participants agreed with the initial price, then the auction (bidding) is then held for increasing according to the English system (in accordance with the English auction system ), and if none of the participants in the auction (trading) agreed with the starting price (did not raise the participant’s card), then the auction (bidding) will be held downward until the cut-off price is reached in the process of reducing the cost, if during none of the participants will agree with one of the proposed (lowering) prices. After this, bidding begins again in the direction of increasing the value of the lot. If none of the participants shows interest and does not raise the card (i.e. does not agree with the price announced by the auctioneer when raising it), then in this case the bidding stops, and the winner is the participant who offered the maximum price.

What is a trading session? It should not be confused with an English or Dutch auction (bidding), because it was created on the basis of the English system (auction), i.e. bidding for an increase, but takes place without announcing the initial price of the lot (sale object). The seller of the property determines the minimum price of the property. Bidders make their offers until the maximum supply is identified, i.e. the maximum price is offered. If during the bidding (auction) the minimum price set by the owner is reached or exceeded, then the bidding is considered completed, and the lot is accordingly sold at the last price (maximum) announced by the bidder. And if the seller (property owner) does not reach the minimum specified price, the auction is stopped by the person conducting the auction, and the auctioneer requests the property owner (seller or representative) consent to sell the lot at the price reached during the trading session. If the seller decides to sell the property at the proposed price, the auction ends. If the owner refuses to sell the lot (object) at the proposed price, then the participants in the trading session are invited to continue trading, i.e. bargain for an object (lot) offered by the seller.

There is also exclusive forms of property sales, under which all conditions are determined individually.

An auction for one of the selected types is carried out in strict accordance with the previously agreed terms of the auction.

Currently, auctions (bidding) in Russia are becoming more public and open.
The Committee for Working with Problem Loans of the Association of the North-West recommends that you carefully study the terms of auctions and be sure to check the information with the organizers of auctions (trading) on ​​all questions of interest.

Head of the Department for Execution of Judicial Acts of the Legal Directorate
OJSC "Bank "St. Petersburg"
Chairman of the Problem Loans Committee
Association of Banks of the North-West
Martynov Oleg Viktorovich

Types of auctions and their features

Table 1. Main types of auctions

Auction type	Description
English auction (open second price auction)	Trading mechanism: open. Buyers successively raise the price; the one who names a bid at which all other participants refuse to continue bidding wins. Another interpretation (“Japanese auction”): the seller consistently raises the bid, buyers leave if the price exceeds the amount they are willing to pay. The increase occurs until one participant remains. He is recognized as the winner.
Dutch auction (open first price auction)	Trading mechanism: open. The seller reduces the price until one of the buyers expresses a desire to buy the item. The buyer pays the amount to which the price has dropped.
Closed first price auction	Trading mechanism: closed. Participants in a closed auction indicate the amounts they are willing to pay for the auction item. The winner is the participant who offered the highest price. The winner pays the amount indicated in the application.
Closed second price auction	It differs from a closed first-price auction in that the winner does not pay the amount indicated in his bid, but the amount of the second highest bid.

The main disadvantage of the English auction is that with such
In organizing bidding, it is convenient for participants to collude and implement a “predatory” strategy. At the same time, the English auction has an undeniable advantage: the winner is the agent with the highest estimate of the lot. In addition, during the bargaining process, participants receive information about each other’s assessments, which makes bargaining more
justified.

In a closed auction, each participant makes a single bid, so
there is much less room for collusion.

Depending on the technology, the following are distinguished:

· auction with an increase in price (consent auction);

· auction with price reduction;

· silent auction.

On auction with increasing prices the starting price is set by agreement with the seller. After its announcement by the auctioneer (leader of the auction), buyers offer their price, increasing the previous one by defined by rules bidding amount. The item is considered sold to the highest bidder. If a product put up for auction is not in demand (there are no proposals to increase its price), it may be withdrawn from auction.

On price reduction auctions the starting price is always too high. During the bidding process, it is reduced until one of the buyers indicates their intention to purchase the product. This method is called "Dutch auction" (Dutchauction), as it is widely used in Holland, where auctions of flowers, ornamental plants, and vegetables are held in this way. They are sold using auction watches. The essence of price reduction auctions is that the auctioneer first sets a maximum starting price, which lights up on a dial installed in the auction room, after which the clock pointer moves towards its decrease. If none of the buyers expresses a desire to purchase the lot at this price, then the auctioneer begins to reduce the price. Each of the buyers present in the hall has a special remote control with a button that allows you to stop the pointer. The buyer of the product is the one who first presses the button in front of him, which stops the price change on the dial. After this, the number under which this buyer is registered with the auction organizers lights up on the dial. He is considered the buyer of this lot. He gets the right to choose and purchase the required quantity of goods at the price fixed on the clock. At the same price, trading is resumed and continues until the minimum price set for each product is reached. This method of conducting an auction significantly speeds up the pace of auction trading.

Conditions silent auction - simultaneous submission of bids by buyers (for example, in writing). The product is sold to the one whose price is the highest.

Depending on the importance of auctions, two types of bidding are used:

· oral bidding(the so-called “English auction”);

· joint bidding (combination of oral bidding and written bids).

First there is an oral auction. At the end of this auction, but before the opening of written applications received, the auctioneer invites buyers who have won the auction for a particular auction item to make further premiums. After this, the auction commission opens written statements in full view of all buyers. Each application shall be read aloud and the bids made therein shall be entered into the report of the results of the auction for the relevant auction units, indicating the price offered and the registration number sealed in an envelope. The winner of the “second stage” wins the auction.

Figure 1 - Joint bidding mechanism

Depending on the method of increasing prices, two types of auctions are distinguished. There are the following ways to increase prices - public and secret.

With the vowel method The auctioneer announces the number of the lot being put up for sale, names the starting price and asks: “Who wins?” A buyer who wants to purchase a lot at a higher price names a new price, which is higher than the previous one by an amount not lower than the minimum premium specified in the auction rules. The auctioneer calls the buyer number under which he is registered at the auction, the new price of the lot and again asks the question: “Who is more?” If after repeating the question three times there is no new offer, the auctioneer hits the gavel, confirming the sale of the lot to the buyer who last named the highest price.