In an auction market, buyers and sellers confront each other directly and bargain over price.

Question

Quizplus · Accepted Answer

In an auction market, buyers and sellers interact directly with each other and compete to place bids or offers at the highest or lowest price, respectively. The auctioneer acts as a facilitator and sets the rules of the auction, but does not participate in the actual buying or selling. Therefore, buyers and sellers engage in a bargaining process where the price is determined by the highest bidder or lowest offerer.

In an Auction Market, Buyers and Sellers Confront Each Other