Term: Dutch auction

A Dutch Auction takes place with the auctioneer starting off at a high asking price. The price continues to descend (lower) until a bidder accepts the price, or the auction reaches a predetermined reserve price set by the seller. This auction is typically used to offload goods that require a quick sale, like fresh produce and flowers. 

A Dutch Auction illustrates the advantage of a speedy auction since a winning bid requires just one bidder’s acceptance of the sale price. Prior to the commencement of the auction, the auctioneer relays information about the objects being sold. The information is either displayed on a clock or electronic device on the site’s main page. 

Dutch Auctions are seen as a competitive alternative to the traditional auctions, where the price increases in incremental bids as opposed to this type of auction.See also: