One of the most astonishing auctions in history occurred in the year 193 A.D. when no less than the entire Roman Empire was tossed on the block by the Praetorian Guard.
First they killed Pertinax, the emperor, and then they announced that the highest bidder could claim the Empire. Didius Julianus outbid all comers and became the emperor for the price of 6,250 drachmas per Guard.
Unfortunately, he was beheaded a mere two months later when Septimus Severus conquered Rome. Julianus may have been the first victim of winner's curse. Later, the Empire was restored to the people.
Less is understood about the auction as used in other civilizations. It is known that the auction was one of the four money-raising institutions (the others being pawnshops, mutual financing associations, and lotteries) used by Buddhist temples and monasteries, and as early as the seventh century, the possessions of deceased monks were sold on the block.
The earliest reference to the auction as practiced in Great Britain is from an entry in the 1595 Oxford English Dictionary, but nothing more is known until the final years of the seventeenth century.
At that time auctions were held in taverns and coffeehouses to sell art. It is likely that such auctions were held daily and that catalogs, announcing the availability of certain merchandise, were printed.
The firm of Sotheby's was established in 1744, and Christie's was founded in 1766.
Terms of sale were largely the same in the eighteenth century as now:
1). High bidder is the buyer. If a dispute arises as to which bid is highest, goods will be put up for sale again. (This is not true today. The auctioneer decides whose bid was accepted and he has the final authority).
2). No bidder may advance another's bid by less than six pence when the amount offered is less than one pound, or by less than one shilling when the price is one pound or more.
3) Merchandise for sale is warranted as perfect, and before removing goods from premises, any buyer may accept or reject them. (Not true today).
4). Each buyer must give his name and make a deposit of 5 shillings on each pound sterling (if demanded); no deliveries will be made during the sale.
5). All purchases must be taken away at the buyer's expense, and the amount due shall be paid within three days of purchase.
6). Any would-be buyer unable to attend the sale may have his commission executed by a representative of the auction firm.
One seventeenth century catalog describes a process called "mineing", which was similar to the Dutch auction because the auctioneer started the bidding high and worked down.
A lot was claimed when someone yelled, "Mine". There was an interesting twist though. After the bid descended to the point where a bidder claimed an item, the bidding actually resumed but this time in an ascending format. So the bids went down and then back up again.
The auction migrated to America where it was used to liquidate goods and to sell unsalable goods at the end of a season. Domestic animals have been sold this way as have tobacco, natural resources, horses, debt, credit, and, of course, slaves.