dutch auction

Thân thiện

The auctioneer begins the dutch auction at a high price.

Definition

1. Noun:
   • A method of selling in which the price is reduced until a buyer is found: A type of auction where the auctioneer begins with a high asking price and lowers it incrementally until a participant accepts the current price or a predetermined reserve price is met.

Usage

• This term is used to describe a specific, descending-price auction format, contrasting with the more common ascending-price (English) auction.
• It is often employed in financial markets, real estate, and for selling perishable goods or surplus inventory.

Examples

Advanced Usage

• "Reverse dutch auction": A procurement method where buyers state their needs and sellers competitively bid lower prices to win the contract. This is a common application in business-to-business commerce.
• Financial Context: In corporate finance, a "Dutch auction tender offer" is a method a company can use to buy back its own shares from shareholders. Shareholders specify the lowest price they are willing to accept, and the company buys shares starting from the lowest price upward until the buyback quota is filled.

Variants and Related Words

• Auction (n): A public sale in which goods or property are sold to the highest bidder.
• Descending-price auction (n): A more formal or descriptive synonym for a dutch auction.

Synonyms

• Descending-price auction
• Reverse auction (Note: This is similar but not always identical; a reverse auction typically involves multiple sellers bidding down a price for a buyer's contract.)

Related Phrases

• "To conduct/hold a dutch auction": To organize and run this type of sale.
  • They decided to hold a dutch auction to quickly sell the antique collection.
• "To bid in a dutch auction": To participate as a potential buyer.
  • Investors were eager to bid in the dutch auction for the government bonds.

Học thuật

Noun

1. a method of selling in which the price is reduced until a buyer is found