A Dutch Auction is a market structure in which the price of something offered is determined after taking in all bids to arrive at the highest price at which the total offering can be sold. The term "Dutch auction" was first used for securities sales by Peter Van der Linden, a Dutch economist, in his book "The Theory of Auction Markets" (1967). In a Dutch auction, all potential buyers are allowed to bid on an item.The seller begins by setting a high asking price and then lowers it until someone submits a bid that meets or beats the current asking price. This process continues until there are no more potential buyers or until the seller reaches their desired selling price.Sellers like Dutch auctions because they allow them to get as much money as possible for their items while also giving buyers an opportunity to purchase items at lower prices than they would have paid in traditional auctions. Buyers like Dutch auctions because they provide opportunities to purchase items at lower prices than those available in other types of auctions.
