Dutch auctions have 2 or more of the same item for sale. Higher bidders are given precendence over lower bidders. In case of a tie precedence is given to the earliest bidder. The price is determined by the lowest winning bid.
Example 1: An auction has 10 items available, starts at $1, and has an increment of $1. If 5 people bid $2 and 10 people bid $1, the 5 $2 bidders plus the earliest 5 of the other $1 bidders win the auction each for $1. The next minimum bid amount goes to $2 since the supply has been exceeded.
Example 2: An auction has 10 items available, starts at $5, and has an increment of $1. Katie bids $15 for 5 items and Doug bids $5 for 10 items. Katie gets 5 items and Doug gets the remaining 5 items, each for $5 (the lowest winning bid). If Susan joins the bidding at $10 for 5 items then Katie gets 5 and Susan gets the remaining 5 items each for $10, and Doug loses out. The next minimum bid amount then goes to $10.
Last Updated: 11/10/2017 9:17:49 AM