Dutch auction

business

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Last updated

June 25, 2026

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A Dutch auction is a type of auction where the seller offers property at progressively lower prices. This continues until a buyer accepts one of the seller's offers or the price becomes too low, leading the seller to withdraw the property. This contrasts with a traditional auction, where bids typically increase until the highest bid is accepted. Dutch auctions are a method of selling goods, often used in business contexts.12

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auction
By contrast, in a so-called Dutch auction, the seller offers property at successively lower prices until one of his offers is accepted or until the price drops so low as to force the withdrawal of the offered property.
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By contrast, in a so-called Dutch auction, the seller offers property at successively lower prices until one of his offers is accepted or until the price drops so low as to force the withdrawal of the offered property.
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Paul Milgrom
…the “English” and the “Dutch” (the former involving low initial prices and ever-increasing bids, the latter involving high initial prices that are successively lowered by the auctioneer until a bidder agrees to buy the item), yield the same revenue for the seller in exclusively private-value auctions. Wilson, in the…
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…the “English” and the “Dutch” (the former involving low initial prices and ever-increasing bids, the latter involving high initial prices that are successively lowered by the auctioneer until a bidder agrees to buy the item), yield the same revenue for the seller in exclusively private-value auctions. Wilson, in the…
Read More