Charity auction

These events are typically hosted in hotels or ballrooms, and dinner or cocktails may be served to guests.

Charity auctions aimed at business leaders and other well-off potential donors often take the form of a formal gala.

[2] In one notable example, Musician Eric Clapton sold 100 of his guitars in a charity auction in 1999 and raised $5 million for his substance abuse treatment facility.

Therefore, bidders have two objectives that could be in conflict with one another: to win items that they value but also to support a charitable cause in part by driving up the price.

This makes the charity auction a public good, and that means that bidders may be incentivized to lose.