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From: Lisabeth/byronbush@redwingnet.com/Pearland/TX)
Date: 04 Feb 1999
Time: 08:52:08
Hi Wally, A Dutch auction is when you have more than one item and the bid price is PER ITEM (not for the lot of items!).
In this case, they could have listed their cashe as "150 boxes of Red Wing". Then if you had the highest bid at $200, you could pick as many boxes as you wanted at that price. When bidding on eBay, when you place your bid in a dutch auction, you tell how many you want. For example "$200 for each of 4 boxes". You would get 4 boxes for $800.
If I came in second with a bid at "$100 apiece for 50 boxes", I would get 50 boxes for $5,000.
If Dino had a bid of "$90 for 150 boxes", you and I would get our boxes and Dino would get the remaining boxes at $90 apiece.
I believe you can set a minimum bid for dutch auctions just like the regular auctions on eBay. Additionally, I believe there is no expense to a seller on eBay if no transaction occurs. So this has been an inexpensive way to "test the water".
Hope this was helpful, Lisabeth.