Auction comes from the rootword "auctio" which literally means "increase". Auctions have existed for centuries. You might be pleasantly surprised by earlier forms and descriptions of auctions. The section below on the history of auctions can probably satisfy some of your historical curiosities. Auctions are especially useful for the sale of a commodity of undetermined value. So if a seller is unsure of the price he can get then auctions are particularly useful. Think of a work of art, which different people would value differently; while a personal collector would value it as another jewel in his crown, the state museum curator would value it in a different manner. An auction often ensures that the object goes to the person who values it the most.