Dutch auction

[youmeus]

I know there have been other threads about Dutch auctions but I still don't understand. I've listed some items with more than one available. Can they sell for less than the starting price?

[11thEagle]

They can't sell for less than the starting price because that is the minimum bid.

If 2 people bid
Person 1 bids £5
Person 2 bids £6

Both will pay £5

[canuckbid]

Let's make this easier to understand. Dutch auction. Say I have 15 items listed for sale on Dutch auction. 1rst person bids for 10 of them at 10 dollars. Second person bids for 10 items at 11 dollars. 3rd person bids for 10 items at 12 dollars. Auction closes. #3 bidder wins 10 items with high bid. #2 bidder wins 5 items with second highest bid. They only get 5 because #3 bidder out bid them on 10 items. # 1 bidder wins none as they were outbid on all of them. None left for them to win with their lower bid. Hope this helps clear it up. That's how it worked for me on the other site with Dutch auction. If I need to be corrected then please do so.

[JudesNiceThings]

Thats the best example I've come across yet! Thanks!

[craig7501]

14) What is a Dutch auction?
A Dutch Auction is an auction in which the seller has multiple identical items to sell. When starting a Dutch Auction the seller must enter the quantity, starting bid (reserve price is not used) and bid increments. All winning bidders pay the same price, which is the lowest successful bid.

Bidders must specify both a bid price and the quantity they want to buy. Proxy bidding is not used in Dutch auctions. Again, all winning bidders pay the same price, which is equal to the amount bid for the last item of the collection.

Example:
Say there is a dutch auction for ten identical items..
Lets say at the end of the auction there have been four bidders...

the first bidder bid £3
the second bidder bid £4
the third bidder bid £5
the fourth bidder bid £6

At the end of the auction the four winning bidders each pay £3
(this is the lowest amount, in this case £3)

Now let's say (using the same senario) the dutch auction
was only for three identical items...

only the second, third and fourth bidders would be winning bidders
and they would all pay £4

the first bidder would have had to bid a higher amount before the auction ended to stay in the running (because there were 4 bidders and only 3 items).

Remember, all successful bidders will pay the same price, which is the lowest successful bid.

Finally, remember demand must exceed supply for the starting bid to go up and even then most users win the items they bid on at the minimum asking price but the only way to be assured of being a winner is to make sure you are not the lowest bidder.

[Rednosty]

Damn I thought for a Minute someone was Selling Holland!

[astral276]

My attempt to explain Dutch auctions: http://homepage.ntlworld.com/astral....icks.htm#a0012

Does it make sense?

[youmeus]

Thanks for all of your replys. I knew the lowest price was what all would pay but wanted to make sure it couldn't be less than my starting price. I think all is well. It is good to have such a bank of knowledge on here as well as cooperation! THANKS!

[JudesNiceThings]

Astral - Yes - it's very clear!

[JaBek1]

In an online auction the selling price can never be lower than the starting price. The starting price is, in effect, a reserve placed on the object being sold. Therefore all online auctions are, by virtue of the minimum starting bid, a reserve auction.
Dennis