Refers to an auction that opens with the highest possible price (ceiling price); this drops at intervals and closes with the lowest price accepted by the seller.
Here’s how the Dutch auction works: The auctioneer determines a product’s ceiling price based on all existing bids for a digital product and keeps dropping this price at different intervals until it gets to the lowest possible offering. At the end of the auction, everyone buys at the lowest price accepted by the seller. It’s in contrast to a traditional auction, which starts from the lowest to the highest price.