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Ebay's Dutch Auction

In a Dutch auction the seller begins with a high asking price and lowers the until a bidder is willing to accept the sellers price or a predetermined reserve price. The winning bidder wins the auction for the last mentioned price.

Many sellers use this auction when it is necessary to move products quickly, because an item can be sold with only one bid. Dutch auction typically end with lower bids and less profit, but it's a risk sellers must take in order to move items quickly.

The largets online auction site, eBay uses a Dutch auction to describe an online auctions where multiple identical items are being auctioned at the same time to an equal number of high bidders. Again it's an quick easy to move a lot of inventory quickly.

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