An Auction

An auction is an expedited buying interaction -- allowing a seller to sell goods quickly for the highest possible prices, and the buyer to acquire goods quickly for the lowest competitive price. An auction service, either a company or online service that manages an auction, profits by charging a certain percentage to the seller.

The auction is conducted by the seller listing the product, accepting bids for a certain time period, and then selling the product to the highest bidder. Many items at an auction will have a reserve price. The reserve price is the minimum price that the bidding must reach in order for the goods to be sold.