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Information About

Dutch Auction




This type of auction is convenient when it is important to auction goods quickly, since a sale never requires more than one bid.

A variation on the Dutch auction was used on the IPO for Google stock.

The Dutch auction is named for its best known example, the Dutch Tulip auctions; in the Netherlands this type of auction is actually known as a "Chinese auction".

"Dutch auction" is also sometimes used to describe online auctions where several identical goods are sold simultaneously to an equal number of high bidders. Economists call the latter auction a multi-unit English ascending auction.