Auction House

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An Auction House is an in-game mechanism to allow for easier trading of items for items. Diablo II did not include this sort of feature, but many other MMORPGs do, notably World of Warcraft.

The benefit of an auction house is that players can put items up for sale in an automated system. They need not be present to sell their item or spam ads about their item in the chat channels. It's also easier to find items you want to trade for, since other players don't have to be online for you to see WUG.

There is no confirmation of an auction house in Diablo III, or any sort of trading features at all, as of yet. Players certainly hope for it, and the D3 Team wants to include it, but they won't comment officially until they're sure one way or the other.

Bashiok comments

The most detailed comment on Diablo III trading we've yet seen came from the D3 Community Manager Bashiok in a forum post in January, 2009. [1]

Just a couple of my own cents on the system. First off we really don’t have a solid plan for any sort of external trading system, that is anything beyond being in the same game with the person. We know we’d like something like that though if at all possible.
Foremost - spamming is bad. I think trade channels usually suck because of the requirement to spam. The amount of time and effort spent just to get your items noticed borders on brain-explosiony. Throw in the lack of easily gauged economy and you’re usually left out in the dark, laughed at, ripped off, etc. Your suggestion seems to mix the idea of an auction house and trade channel, in that you can use a channel in-game to spam, and then have some sort of UI to trade the item. That definitely solves one issue, which is needing to leave the game and just sit in a chat channel. What it doesn’t solve is needing to sit in a chat channel and spam. Sure, you could probably play and spam the channel every once in a while but it’s really not the cleanest approach. You’re still spamming a chat channel, you’re still limited to the people that want to see that spam (ie not many).
Since you brought it up let’s move on to the World of Warcraft’s auction house. World of Warcraft did not invent the auction house trading system. It may have certainly refined it, but an irrational hatred of the game that some of you seem to have really shouldn’t translate to game systems that aren’t original to it. There are some major advantages to an auction house similar to WoW’s. You don’t have to be present being the biggest and best. You can be playing with friends, PvPing, asleep, at school or work, and someone has the ability to see your items, and you have a greater chance to sell/trade them. You don’t have to spam a channel, you don’t have to even be online and playing. That’s HUGE, and really the main reason so many people use trading systems such as websites and forums for Diablo II. You want to focus on playing the game or not playing the game, not sitting around hoping someone wants your item.
It also helps form a visible and easily identified economy. I’m a new player, I got a sword I think it’s probably pretty nice, I can go on an auction house and search for it or similar swords and get an idea of how much it should sell for. In this case being in a trade channel is no better whether it’s in-game or out of game. What you’d probably end up with is people still going to forums and more static styles of trading found on websites, but even then any unified sense of economy is spread thin. Maybe that’s not such a bad system in itself, and an official trading site could work. Of course what you lose either way though, auction house or website, is in-game player interaction. Which is what I assume you’re striving to keep.
When it comes down to it, any change or addition or removal of any systems have to be weighed. Do the positives outweigh the negatives?
I’ll go back to what I said at the beginning and state we don’t know what if any types of trading systems will be in the final game. Maybe there won’t be, it may be that eventually we settle on leaving it Diablo II style. We have some ideas of what would be cool, but at the end of the day we’re not going to do anything that isn’t far and away a more positive change for the game.