Furthermore, the auction house can prevent the agent from participating and bidding in any subsequent auctions.
The designer of an auction house, for instance, would like to make it impossible or extremely difficult for the agents to violate any of the prescribed norms.
For instance, alongside the rules of various auction protocols, an auction house should also include a list of rules that describe desirable behaviour while operating within the auction house.
For example, an auction house may withhold an agent's deposit or entry fee paid, if the agent refuses to pay for a good won in an auction.
One might even have an auction on the spot with a great auction house promoting it.
If the seller was not happy, he or she could go to another auction house.
Secondly, the buyers premium produces a serious conflict of interest for the auction house.
The only party not to have benefited to the full would have been the auction house.
