In this type of auction the sale of the item begins a very high asking price. This price is progressively lowered at specific intervals in decrements. This continues until either a bidder is willing to accept the auctioneer’s current price, or the reserve price is met and the auction closes.
It is known as a descending auction because the bids decrease over the course of the auction. Unlike in English auctions, there is never a larger number of bids than there are items being auctioned. Thus Dutch auctions tend to end in a fairly short amount of time and are often associated with perishable goods such as flowers and produce. Indeed, the greatest advantage of Dutch auctions is probably their relative speed, which is useful for sellers who want to sell their goods as quickly as possible.