Dutch Auction
A Dutch auction is a bidding method where the price starts high and decreases until a buyer accepts the price.
In a Dutch auction, the auctioneer begins with a high asking price which is lowered progressively until a participant accepts the current price. The first person to accept the price wins the item or the right to buy it. This auction method is often used when there is a time constraint or when sellers want to avoid long bidding wars.
Dutch auctions are commonly used in:
- Flower markets in the Netherlands (where the method originated)
- IPO pricing for shares (e.g., Google used it in their IPO)
- NFT or digital asset sales
- Real estate sales or liquidation of multiple units