Bidding vs Auction Despite auction being a very popular form of
selling and buying of goods and services, there are people who
remain confused between the terms bidding and auction. This may
be due to various types of auctioning systems in prevalence. As
against the common practice of printing an MRP on the product
and selling it in the market, auction is a practice of arousing
curiosity among the people about a product and then allowing
people to participate in an open auction where they place their
bids to get hold of the product. The act of placing the bids is
called bidding. The person who places the highest bid is
normally given the product and the winner has to give a fixed
percentage to those who conduct the process of auction. If you
delve deep in to history, you would find that the tradition
called swayamvar in ancient India, where princesses selected
from among many princes’s who gathered for the occasion as a
form of auction. She chose after listening to the qualities and
attributes of various prin