Dutch auctions are designed to handle the situation where a seller has several identical slides to sell.
This is ideal when a seller has several identical original color slides that he/she
would like sell all at once with one auction listing.
On the Sell Page the seller must change the Auction Type drop down box to show Dutch Auction.
The seller indicates the quantity available and the starting price. Once the auction
appears on the system, the bidders then indicate the quantity they would like and place their bids, which
must be at the seller's starting price (or higher). The price for all winners will increase by the $1 bid increment once the
initial quanitity offered are all bid on and an additional bidder places a
bid.
Here is an example, say a lucky seller has five 1969 original kodachrome slides of
Air Canada Viscount CF-THG being sold at a starting price of $10 each.
If five or less bidders bid on these slides, they will each pay $10 per slide. Buyers can
purchase any quantity they like. But the next five bids will be processed at $11 per slide,
and the next five bids at $12 per slide... and so on. The auction software automatically
increases the bid amount by the $1 bid increment with each successive five bids placed.
Bidders can increase their chances of being a winner by placing high bids. Still using the above
auction as an example, let's say there are 9 bidders that bid:
$50 (bidder 1)
$10 (bidder 2)
$10 (bidder 3)
$10 (bidder 4)
$10 (bidder 5)
$11 (bidder 6)
$39 (bidder 7)
$16 (bidder 8)
$11 (bidder 9)
If no other bids are placed, the five slides will be won by bidders 1, 7, 8, 6 and 9 (order of
highest to lowest bid). They will all end up paying $11 for the slide, this is because the bid placed by
bidder 6 increased the price by the $1 bid increment. Bidders 2, 3, 4, and 5 all lost out to other
higher bids.
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Vickrey Auctions
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The Vickrey auction allows for selling single auction lots as does the English
Auction. The difference is that the highest bidder wins the auction at the price offered by the second highest bidder. This is a good format because bidders have the incentive to bid what they think the
auction lot is worth and not worry about what others will bid.
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Yankee Auctions
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A Yankee Auction is a variation of the Dutch Auction where successful
bidders pay what they bid as opposed to paying the price determined by the lowest qualified bidder (as in a Dutch Auction).
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