Benefits of auctions include:
• Liquidity: Sellers and buyers are connected in a global marketplace.
• Price discovery: Even difficult-to-price items can be competitively priced based
on supply and demand.
• Price transparency: Everyone in the world can see the asking and bidding prices
for items, although prices can vary from auction site to auction site.
• Market efficiency: Consumers are offered access to a selection of goods that
would be impossible to access physically, and consumer welfare is often
increased due to reduced prices.
• Lower transaction costs: Merchants and consumers alike are benefited by the
reduced costs of selling and purchasing goods compared to the physical marketplace.