Dutch Auction (Online)

Used for selling multiple items. As in a traditional auction, the winners are the bidders who submit the highest per-item bids. However, the price they pay per item is determined by the lowest of those winning bids.

For example:

• There are 20 cushions for sale.
• Jack places a bid for all 20 cushions at £5 each.
• Jill places a bid for 8 of the cushions at £8 each.
• Because Jill's bid (£8) beat Jack's bid (£5), Jill wins all 8 cushions she bid for.
• Jack wins the remaining 12 cushions.
• The final per-item price both Jack and Jill pay for their cushions is the lowest of their bids, which is Jack's price of £5.
• If Jill had bid £8 on all 20 cushions, she would have won the sale, but because there were no other winning bidders, she would have paid £8 for each cushion.