AUCTIONS
The auction also goes back far further in history than the joint stock company- likely to Babylonian times. And like the stock exchanges and limited liability structures of today, the auction is going strong.
Through the ages
The famous“ Dutch auction” emerged from this urgency. Here prices start high and fall until the first bidder commits. Across the Channel, London’ s coffee houses and literary societies used auctions for books, manuscripts and estates, gradually moving from the noisy market floor into the refined showrooms of Christie’ s and Sotheby’ s.
AUCTIONS
“ The crier( praeco) called out the prices and the article was adjudged to the highest bidder by the magistrate who was present, a money broker( argentarius) meanwhile noting down the price and receiving the money or security for the article sold.”[ 2 ]
Even then, the fundamentals were familiar: set the stage, invite the crowd, let bidders compete.
The auction also goes back far further in history than the joint stock company- likely to Babylonian times. And like the stock exchanges and limited liability structures of today, the auction is going strong.
Through the ages
By the 17th century, Dutch merchants used open outcry auctions to sell fish and flowers quickly before the fresh produce spoiled. Lively auction markets coupled with groundbreaking capital raising mechanisms gave rise to the saying that the Dutch were“ the envy of some, the fear of others, and the wonder of all their neighbours”[ 3 ].
The famous“ Dutch auction” emerged from this urgency. Here prices start high and fall until the first bidder commits. Across the Channel, London’ s coffee houses and literary societies used auctions for books, manuscripts and estates, gradually moving from the noisy market floor into the refined showrooms of Christie’ s and Sotheby’ s.
“ In the 18th century, artwork, libraries and natural history collections began to be auctioned in taverns and coffee houses. Sotheby’ s auction house began in such fashion. It was established in London in 1744 when Samuel Baker( 1713-1778) supervised the clearance of several hundred rare and valuable books from the library of an acquaintance. The auction house Christie’ s, founded by James Christie( 1730-1803), began life in a very similar fashion.”[ 4 ]
28 REI MAGAZINE DEC / JAN 2026