A Dutch Auction, is an auction type, where a seller has multiple identical items they wish to sell. The seller specifies the minimum price (the starting bid) and the number of items available. You can bid at or above the minimum starting bid, for the quantity you are interested in purchasing. At the close of the auction, the highest bidder(s)(in dollar amount) win the item(s) at the lowest successful bid. In the case of similar bids, the earlier bid takes precedent.

For example, imagine there are 10 rings being sold for $100. 10 people bid $100 for one ring each. In order to bid, your must bid above $100, since all the rings are currently bid on at $100. If the auction ends, after your bid, you win the ring at the lowest successful bid which is $100. since more people didn't increase the bid. A Dutch Auction is the best way to buy items at the lowest possible price.

If a bidder bids on multiple quantities, the number of items they can bid on, cannot exceed the number of items than are offered or available at the lowest successful bid.