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Bidding Scenario in a Reverse Dutch Auction

In a Reverse Dutch auction, the bid increment is entered as a negative number, and the bid amount increases over time.

This auction is a multiple-quantity auction for 50 items, starting at 10:00 AM. The starting bid is set at $30, the bid decrement is set at -$5. Every five minutes the price increases by $5, up to $55. The auction is not sealed.

The bidding for this auction is shown in the following tables ordered by first bid, second bid, third bid, and so on. The first part of Table 63 shows the user's bid; the second part of the table shows the result of that bid.

Table 63.  First Bid in the Multiple-Quantity Offer, Reverse Dutch Auction
User Placing Bid
Quantity Bid
Time Bid Placed
Mary
30
8/25/00 10:07:06 AM
Results after Bid
For User
Quantity Won
Quantity Bid
Mary
30
35

Bid Summary: Mary places the first request in this Reverse Dutch auction. Because Mary placed her request after the first five minute window of the auction, the bid price has already increased by $5 to $35. Mary immediately wins 30 items at $35 each.

Table 64 lists the results from the second bid in the auction.

Table 64.  Second Bid in the Multiple-Quantity, Reverse Dutch Auction
User Placing Bid
Quantity Bid
Time Bid Placed
Don
10
8/25/00 10:10:38 AM
Results after Bid
For User
Quantity Won
Quantity Bid
Don
10
40
Mary
30
35

Bid Summary: Don requests 10 items in this auction after the second five-minute window (10 minutes) of the auction. His bid amount is $40. Don immediately wins 10 items at $40 each.

Table 65 lists the results from the third bid in the auction.

Table 65.  Third Bid in the Multiple-Quantity, Reverse Dutch Auction
User Placing Bid
Quantity Bid
Time Bid Placed
Don
10
8/25/00 10:37:43 AM
Results after Bid
For User
Quantity Won
Quantity Bid
Don
10
55
Don
10
40
Mary
30
35

Bid Summary: Don places a second request for ten items after the seventh five-minute window of the auction (35 minutes). The maximum price in the auction is $55, therefore, Don wins ten items at $55 each.

Auction Summary: The auction closes, as all 50 items are sold. Mary wins 30 items at $35 each. Don wins 20 items at $40 each and 10 items at $55 each.


 Siebel eAuction Guide 
 Published: 18 April 2003