LL-L 'Auctions' 2006.07.14 (023 [E]

[Lowlands-L]

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L O W L A N D S - L * 14 July 2006 * Volume 03
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From: Sandy Fleming <sandy at scotstext.org>
Subject: LL-L 'History' 2006.07.12 (02) [E]

>From: 'Hugo Zweep' <Zweep at bigpond.com>
>Subject: -L 'Anniversary' 2006.07.11 (09) [E]
>
>Ben
>A Dutch auction is where the auctioneer starts with a high price and
>decreases that price until one of the particpants accepts the price being
>offered. This is the opposite of the traditional English type auction where
>the auctioneer starts with a low price and leaves it to the participants to
>raise what they offer.
>
>I don't know how far back the Dutch auction goes but I did see it as a small
>boy and clearly remember the auction room in Winschoten, prov. Groningen, in
>1948 where farm produce was being sold by this method.
>
>Then, wouldn't you know, I grew up in Australia and became an auctioneer for
>a while of real estate by the English method. Often thought how I'd like to
>do a Dutch auction but the idea was too strange to find acceptance.
>
>
I think something like this goes on on British TV at the moment, though
different in the sense that they're selling in bulk and so the bidding
doesn't stop until a price has been given for every copy of an item. On
channels like "Price Drop TV" they sell a fixed number of identical
items and keep dropping the price until all are sold. Everyone is then
charged the final price.

For example, they might have 98 DVD recorders for sale at £110 each.
People phone in to order them and as orders slow they drop the price to
keep it going. All the time the current price and the number left are
shown on the screen. Finally the price has dropped to, say, £45 with
only four DVD recorders left and now the bidding is motivated by the
fact that if you don't bid quickly, you won't get one, and it's very
cheap now. Then with only one left the price has dropped to maybe £43
and someone orders it. At this point bidding closes and everybody
receives their DVD recorder at the final price of £43.

That's how I understand it to work, though it's not subtitled and I'm
only flipping though so I could be wrong!

Sandy Fleming
http://scotstext.org/




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