 Definition Dutch Auction? Meaning.
A Dutch Auction is a method of selling and buying whereby the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price, or a predetermined reserve price (the seller's minimum acceptable price) is reached.
Typically the seller has multiple, identical items listed for bidding and the price is
gradually lowered until it meets an acceptable level to enough buyers for
the entire offering to be sold.
This type of auction is convenient when it is important to
auction goods quickly, since a sale never requires more than one bid. The
Dutch auction is named for its best known example, the Dutch flower auctions. Also known as clock auction.
Dutch auctions are a competitive alternative to a traditional auction, in which bids of increasing value are made until a final selling price is reached, because due to ever-decreasing bids buyers must act decisively to name their price or risk losing to a lower offer.
In M&A and/or Corporate Finance, the method is an interesting alternative
to the traditional negotiated pricing process used by underwriters to set
IPO prices. The method was successfully used by Google for its 2004 Initial
Public Offering.
|
Special Interest Group
|
Join
|
|
Dutch Auctions Special Interest Group.
Special Interest Group (1 members)
|
|
|
Forum about Dutch Auctions.
|
|
|
Best Practices
|
|
|
The top-rated topics about Dutch Auctions. Here you will find the most valuable ideas and practical suggestions.
|
|
|
Expert Tips
|
|
|
Advanced insights about Dutch Auctions. Here you will find professional advices by experts.
|
|
|
Information Sources
|
|
|
Various sources of information regarding Dutch Auctions. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.
|
|
|
Research Links
|
|
|
Automatically jump to further useful sources regarding Dutch Auctions.
|
|
|
|
|
|
News
|
Videos
|
Presentations
|
Books
|
More
|
|
|
|
Compare with: Business
Models | Reverse
Auction
|
|
|
2