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An auction is a process by which products are bought and sold, with the highest bidder being able to purchase the product. In economics, an auction can be considered to be a type of market and a way to decide upon a price for a specific product. While auctions can lead people to get the highest possible price for a product, a minimum reserve price may have to be specified to prevent the product from selling at a price that is too low.
Forced auctions may occur in certain legal circumstances.
One common need for auctions is in the selling of real estate. Antiques, art work, jewellery and collectibles are usually sold by auction and auction catalogs may be produced to detail products being sold. Yearling thoroughbred horses are typically sold at auction. Other products often auctioned include livestock, cars and boats.
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