A Dutch auction is a unique and dynamic type of auction where the auctioneer begins with a high asking price that gradually decreases over time. Participants then decide when the price is right for them to place a bid. This format is in contrast to the more traditional ascending bid auctions where prices start low and increase.
In a Dutch auction on our website, the process unfolds as follows: Starting Price: The auction begins with a predetermined high starting price set by the auctioneer. This initial price is often higher than the expected market value of the item. Gradual Price Reduction: Over the course of the auction, the price systematically decreases at regular intervals or in response to participant bidding activity. The decrement could be based on time elapsed or specific rules defined by the auction. Participant Bidding: Participants can place bids at any time during the auction. Bidding continues until a participant decides the current price is acceptable to them. Winning Bidder: The participant who places the bid that matches the current price becomes the winning bidder. This participant will then secure the item or service at that final price.
Let's say an item starts with a Dutch auction at 500€. Every hour, the price decreases by 50€. A bidder might wait until the price drops to 350€ before deciding to place a bid. If no one else bids, they would win the auction at 350€.
