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On eBay, a Dutch Auction is defined as an auction for multiple
items (two or more) which are identical and which can have a number of
winning bidders.
As a buyer, you define how many items you wish to buy and the
maximum price you will pay per item. When the auction finishes, all of the
successful bidders will only have to pay the same amount as the lowest
winning bid.
If your own bid is to be a winning one you must have a greater bid
total per item in comparison with other bids, irrespective of the number of items
you are bidding on. You are not allowed to reduce the total bid value in later
bids.
Complicated? – yes, it is isn’t it – let’s
see if an example will help. Let’s say the listing has 20 items available and
attracts just 2 bidders;-
- Bidder
number 1 has placed a bid for 6 items at £10.00 each.
- Bidder
number 2 has placed a bid for 16 items at £12.00 each.
In this situation, the lowest bid which is successful is £10.00. Therefore
the end result for this listing is:-
- Bidder number
1 wins 4 items at £10.00 each.
- Bidder
number 2 wins 16 items at £10.00 each.
As a winning bidder you are allowed to refuse to accept a quantity
which is less that the number you bid for, so bidder number 1 is not obliged
to complete the transaction because they bid for 6, but only 4 are available.
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