Dutch auction

As a Dutch auction (also reverse auction or Dutch auction) a special form of auction is called.

Definition

In a reverse auction, the seller an offer to sell, while giving a starting price for it before. The price is now during the term of the auction declining, that is, the selling price of the product decreases with increasing maturity. The first prospective buyer who agrees wins the auction at the current price. The longer wait for the buyers, the lower so the price.

Background

Unlike an ordinary auction, it can very quickly come to the sale of the article after the start in a reverse auction, because the buyers are to each other under time pressure. If offered too late to obtain a lower price, the item may be sold to another bidder.