IV.   Consensus

Bidding is the process of reaching a Consensus through the process of offering a good, service or security for sale and then securing its sale to the highest bidder, usually through a formal process such as an auction. Bidding is in effect the formalization of the ancient art of “haggling”.

The word auction is derived from the Latin word auctionis meaning “a sale of slaves through a bidding process”. The special register of slaves or “tabulae” was even called an auctionarius for such an event. The sale of bonds of slavery in honor of this ancient Roman process is continued today in Roman courts with the use of block and gavel.

There are generally recognized to be four common types of Auction being Open-Ascending Price, Open-Descending Price, First-Price Sealed-Bid and Sealed-Bid Second Price:

(i) Open-Ascending Price Auction also known as an “English Auction” is when participants bid openly against each other with each successive accepted bid higher than the previous; and

(ii) Open-Descending Price Auction also known as a “Dutch Auction” is when the Auctioneer announces the highest asking price which is gradually lowered until some participant is willing to accept the auctioneer’s price; and

(iii) First-Price Sealed-Bid Auction is when all bidders simultaneously submit sealed bids and the highest secret bid wins; and

(iv) Sealed-Bid Second Price Auction is when all bidders simultaneously submit sealed bids and the second highest secret bid wins; and

As Roman Courts seek to perfect the sale of bonds against the accused, the Judgment also represents the opening highest price of an Open-Descending Price Auction or “Dutch Auction” with the Judge or Magistrate as Auctioneer. Unless the accused makes a lower legitimate bid, the original highest bid (sentence) is deemed the sale price and the accused is assumed to have consented by the time the Judge strikes the block with their gavel.

As the Judgment of a Roman Court is also a Dutch Auction, the Judge and Magistrate must give adequate time for the accused or convicted to vocally lodge a competing lower bid. Should the judge or magistrate terminate the Auction by striking the block prematurely and before the accused or convicted has finished speaking, then under appeal the Judgment should be ruled invalid.