Which of the following best defines an "auction"?

An auction is best defined as a competitive method of selling property through bids. In this context, an auction involves multiple participants who place bids on items, with the highest bid winning the sale. This competitive nature is a fundamental aspect of auctions, as it allows potential buyers to evaluate the item and compete against each other, ultimately driving the price up to its market value.

The process of bidding creates a dynamic environment where the final price is determined by the willingness of buyers to pay, making it distinct from other types of sales. Unlike a fixed-price sale, where the price is predetermined and does not change based on buyer interest, auctions thrive on competition and can often result in prices that exceed initial expectations. This method can apply to various items, including real estate, art, and collectibles, further highlighting its versatility as a selling approach.