Dutch auction  From Wikipedia, the free encyclopedia Jump to:
navigation, search A 1957 Dutch auction in Germany to sell
fruits  A Dutch auction is a type of auction in which the
auctioneer begins with a high asking price which is lowered
until some participant is willing to accept the auctioneer's
price, or a predetermined reserve price (the seller's minimum
acceptable price) is reached. The winning participant pays the
last announced price. This is also known as a clock auction or
an open-outcry descending-price auction.  This type of auction
is convenient when it is important to auction goods quickly,
since a sale never requires more than one bid. Theoretically,
the bidding strategy and results of this auction are equivalent
to those in a sealed first-price auction.  Auction process[edit]
In a Dutch auction, the item being sold is initially offered at
a very high price, well in excess of the amount the seller
expects to receive. Bids are not sealed, as they are in some
types of auctions. The price is lowe