What is the term for an auction where bids are made and accepted in descending order?

The term for an auction where bids are made and accepted in descending order is a Dutch auction. In this type of auction, the auctioneer starts with a high price and then gradually lowers it until a bidder accepts the current price. This format is particularly effective in encouraging immediate bidding, as participants are motivated to act quickly to secure the item before the price drops further.

In contrast, an English auction involves bids being made in ascending order, where participants compete to outbid each other's offers. A sealed bid auction allows bidders to submit their bids confidentially, with the highest bid winning without an ongoing bidding process. An absolute auction refers to an auction without any reserve price, meaning the item will be sold regardless of the bids, but it does not specify the bidding method used. Thus, recognizing the unique structure of the Dutch auction is key to understanding its operation.