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Re: Dutch Auction

From: Dino Fire, Chapel Hill
Date: 04 Feb 1999
Time: 10:28:51

Comments

Lisabeth, actually, it works a wee bit differently from your explanation.

If there are a total of 150 boxes available and the Dutch Auction orders were like this:

Wally 4 boxes @ $200.00 Lisabeth 5 boxes @ $100.00 Dino 10 boxes @ $90.00 131 boxes unclaimed

Then each of the bidders would get their requested quantity at the lowest of the Dutch bid prices, which would be $90.00 each. Only if the total number of available pieces were claimed at a rate higher than the lowest would you have to pay more, like this:

Wally 5 boxes @ $200.00 Lisabeth 145 boxes @ $100.00 Dino 10 boxes @ $90.00

Then Wally and Lisabeth get their boxes at the lowest available price, which is $100.00, and Dino is out of luck.

Dino

Last changed: October 09, 2005