XAM 8 | CHARITY AUCTION
A charity auction is an event where goods or services are sold to the highest bidder, but the money then goes toward a specific cause or project. In a Charity Auction, the winning payment benefits a cause that is presumably valued by the bidder, as well as competing bidders. The Charity Auction meets two objectives. The first objective is to win something with a perceived value, and the second is to support a charitable cause.
The amount that a bidder can bid will be limited to the PLAYs/AuX that the bidder is holding in the wallet and it would be escrowed.
Example | There could be a Charity Auction for dinner with a celebrity (say a Nobel Prize laureate, a movie star etc.). How much a bidder is willing to pay for such a dinner is subjective, as a bidder's valuation is not affected by how other bidders value the prize. According to the New York Times, items that sell well in such auctions are experiential items that cannot typically be bought in the store, including meetings with celebrities, an autographed guitar, naming rights for characters in a forthcoming novel and more. 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.
This makes the Charity Auction a public good, philanthropic event.
