An auction is basically a public sale wherein any object is sold to the highest bidder. It could be specific as a process
of purchasing and selling things by offering them up for bid, grasping bids and selling the things out to the highest bidder. This is what is commonly the case. However, a sale to the lowest bidder can also take place, in cases where land is sold for non-payment of taxes to anyone willing to take it for the shortest term; or where a contract is offered to an individual or party willing to take it for the shortest term; or where a contract is offered to an individual or party willing to perform it at the lowest price. Such cases too seem to fairly come under the purview of the term auction.

In case of auction the seller presents the products on a public platform. The selling price of the products are determined by the bids or offers of buyers interested in
buying them based on their individual estimation of assessment of value of and absolutely need of the products. The human offering the highest bid at closing of auction acquires the right to purchase the products at the bid price. The winner of the bid is normally legally bound to buy the merchandise auctioned. In recent times auctions have been conducted online.

The benefits of auction are many. Some of the significant advantages are:

a)The auctioned merchandise fetches the highest price in the given situation. Thus, in a targeted way there is the maximization or optimization of profit.

b) At an auction the goods are almost certainly disposed off after bidding by their sale to the highest bidder. Hence,
this serves as the right podium for disposing or selling out of accumulated goods. Otherwise, business could have become
stagnant due to the stocking of these goods. Certain items could also have perished (in case of perishable goods) or expired if not sold out in measure .

c) In case of auctioning a variety of articles might come up for sale, which can not be otherwise available in the market.
The buyer can get quite surprised by looking at a treasure trove of antique articles available at an auction.

d) An auction might also be considered as a method for estimating the assessment of worth of certain commodities which have hitherto undetermined or variable prices.