Dutch auction

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Dutch auction

An auction in which the asking price is set high and then lowered until someone buys the item. What is this, a Dutch auction? Why is the auctioneer starting out at $1,000 for that piece of junk?
See also: auction, Dutch

Dutch auction

an auction or sale that starts off with a high asking price that is then reduced until a buyer is found. (Viewed by some as insulting to the Dutch.) Dutch auctions are rare—most auctioneers start with a lower price than they hope to obtain. My real estate agent advised me to ask a reasonable price for my house rather than get involved with a Dutch auction.
See also: auction, Dutch
References in periodicals archive ?
The reverse multi-unit sealed-bid auction outlined by the Treasury is strategically equivalent to a certain falling-price multi-unit auction, which is why the former is usually called a Dutch auction.
Fannie Mae (NYSE: FNM), the largest US home funding company, is planning to sell USD5bn benchmark bills on Wednesday in a Dutch auction, reports Reuters.
A Dutch auction is being held for people to clear the decks of tat or treasure and have a laugh while they do it.
A Dutch auction is designed to level the playing field by allowing potential investors the chance to help set the price of the IPO through bidding prior to the date of the offering.
In a Dutch Auction each holiday lot starts at the maximum price and at regular intervals the price drops until it reaches the reserve price.
So he turned to a little-used financial technique called a Dutch auction.
The second-price auction, called a Dutch auction in the financial press, has been proposed as a simple alternative to current Treasury practice that would prevent the type of abuses witnessed last year while lowering average borrowing costs.
Analysis is necessary because, applied in this context, it is not at all clear that a Dutch auction would reduce the cost of Treasury financing; indeed, it might actually increase the Treasury's costs.