An auction which is characterized by descending bids is known as a(n):
A) English auction.
B) Dutch auction.
C) French auction.
D) sealed-bid auction.
E) second-price auction.

Question

Quizplus · Accepted Answer

Descending bids are the hallmark of Dutch auctions, also called reverse auctions. They are typically used for selling perishable goods, such as flowers or fish, where the seller wants to quickly offload their inventory. As the auctioneer lowers the price, bidders must decide when to make their bid, as they risk missing out on the opportunity if they wait too long.

An Auction Which Is Characterized by Descending Bids Is Known