Dutch auction

auction trade - is not uncommon in our time.And it's not so surprising, because it helps one to realize profitable to sellers of certain goods, while others buy what they need at a good price for yourself.It is difficult to overestimate the importance of this trade.Evidence of this are the international auctions, through which huge volumes of goods sold.For about 70% of tea, 90-95% of greasy wool, significant amounts of furs sold in this way.In the Netherlands, there is constantly working flower auctions.

Some believe that the sale of goods at the auction is beneficial only for the seller, because the price of each step is constantly growing, and it seems that she just screwed.However, this is only partly true for the traditional type of auction, to which we are accustomed.But the auction can take place in another way, when the price of each step does not increase but decreases.This type of trade is called a Dutch auction.

Dutch auction is a view in which the right is assigned to deliberately inflated starting price, and then start to gradually reduce it until someone buys exhibited commodity.If multiple sellers, the buyer chooses the one who ask for a lower price.

This type of auction sales in the international practice is sometimes referred to Weidling.Its essence is as follows: the seller determines the maximum price for the goods, which can be seen on the set in the hall of a special dial and begins to decrease until someone from members presses the fixed him a button and thereby express its intention to make a deal.

Dutch auction is commonly used for the sale of a large number of identical objects.It is very convenient for both retail and wholesale customers and for wholesalers.By the way, invented his tulip sellers, because they were very interested in wholesale sales of its perishable goods.The apparent advantage for the seller is to quickly and easily sell their goods.A profitable customers that the price will be higher than the starting only in case of excess of demand over supply.The Dutch auction is called the reverse, as opposed to the traditional method takogog kind of trade.Participate in it can be anyone on the Internet because a lot of web sites, allowing both to sell and buy goods via auction.As an example, consider a Dutch auction on eBay.

Winners there may be several.Another feature is that the party other than price must also indicate the amount of goods he wants to buy.The system «proxy bidding» is not valid, it means that the maximum rate of each participant is known to all potential buyers.The buyer has the right to acquire a lot, if I suddenly found that it accounts for fewer goods than he ordered.In this case, the remainder of the production will be offered to you for the next bidder.

curious detail: according to the rules of eBay, when the auction coming to the finish, each winner pays the price, which was specified in the minimum success rate!Since eBay does not send notifications that you are "left" list of winners of the auction held by the Dutch, it is necessary from time to time to check the progress of trading in order to, if necessary, to make a new bid.It looks a bit confusing, is not it?Therefore, we consider some examples.

For example, a seller decided to put to the Dutch Auction 10 digital cameras, starting price of each of which is 200 USD.If there is 10 or fewer people, she is quite happy and they make a bet of 200 USD, all of them will be in the list of winners.And if there will be more willing to, for example, 15 people, will benefit only the first 10. For example, among the 15 participants of the 7 people put 150 USD, and 5 participants - 130 USD.In this case, the camera will receive the first 7 people with rates of 150 USD or 3 people who put 130 USD before others.And they will pay the price of 130 USD, as this is the minimum size of the winning bid.