An auction is a public sale process where goods, services, or properties are sold to the highest bidder. It involves participants placing competitive bids, with the item going to the person willing to pay the most. Auctions can be conducted in various formats, including live, online, or sealed bids. In a live auction, an auctioneer manages the bidding process, often starting with a minimum price and encouraging participants to bid higher amounts. Online auctions, like those on eBay, allow bidders to participate remotely, often over a set period. Sealed-bid auctions require bidders to submit confidential bids, with the highest bid winning. Auctions are used for a wide range of items, from art and antiques to real estate and government contracts. They are valued for their ability to determine market value through competitive bidding, ensuring that items are sold at the highest possible price. However, auctions can also have drawbacks. They may lead to overbidding, where participants pay more than an item's intrinsic value due to competition. Additionally, the auction process can be intimidating for inexperienced bidders, and the outcome is uncertain until the auction concludes.