Bidders know a reserve price has been set but do not know what it is. In order to win the auction, a bidder must meet or exceed the reserve price and have the highest bid. If no bidders meet the reserve price, neither the seller nor the high bidder are obligated to complete the transaction. Dutch Auctions Dutch Auctions are typically held for sellers with many identical items to sell. Sellers start by listing a minimum price, or starting bid, and the number of items for sale.
Bidders specify both a bid price and the quantity they want to buy.
All winning bidders pay the same price, which is the lowest successful bid. So you might win for less than what you bid. All rights reserved.