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Bidding Rules Used with a Dutch Auction

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In a Dutch auction, the bid amount drops over time. The bid is not entered by the user, it is calculated by Siebel eAuction. A Dutch auction is useful in situations where the product to be sold at auction is perishable and its value decreases as the product ages (for example, fresh flowers or produce). Both single- and multiple-quantity auctions can be sold in a Dutch auction.

The following rules apply to a Dutch auction:

Winning bid price starts at a given value and drops over time; value is automatically calculated by the system using an equation.
Initially, the starting bid defaults to the minimum amount a lister will accept for an auction item.
The bid increment value can be positive or negative. If negative, the price will increase over time; if positive, the price will decrease over time.
Multiple-quantity Dutch auctions close automatically when the last quantity in the auction has a winning bid.
Single-quantity Dutch auctions close automatically after the first bid.

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