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Auctions Market Strategy.

A. Are auctions the optimal method to sell a security or service?
B. What are the advantages, and disadvantages of the Auction method of Selling for the buyer and seller, using a specific example..
C. Explain why corporations do not sell "all" their products by auctions?
D. What are the reasons for the success of Internet auction companies such as e-bay and Priceline?.

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Step 1
Auctions are an optimal method to sell a security or service. Auction enables the seller to enter competitive offers and the buyer competitive bids. The matching of offers with bids is easy, fast, and less costly than other methods of selling a security or service. There are predetermined conditions of sale and the buyer is bound by those conditions. The auction method provides the opportunity of the seller of security or services at a fair market value. In case of services, since these are perishable it is necessary to set the time and date when they will be sold. This is possible through the auction method. The auction method enables the seller of a security or service, to market to a qualified buyer. Auction is optimal because it ...

Solution Summary

Auctions Market Strategy is discussed step-by-step in this solution. The response also includes the sources used.

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