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Auctions are a form of trade, a mechanism to match a buyer and seller for any item of value. The valuation of items is usually subjective and is usually achieved through a bidding process that finally ends after the last bid is accepted by the seller. Historical evidence suggests that auctions have been around for about 10,000 years. Auctions have been used to sell items to consumers, auction off assets such as treasury bonds and transmission bandwidths, and for many other types of sales. An auction market is a place for off-line auctions or a virtual space for online auctions that facilitates auctions.

The main function of a good auction market is to facilitate an efficient and fair trade. Efficiency could be defined as generating ...

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