In a Dutch Auction

question 28

Multiple Choice

In a Dutch auction:

• A) buyers bid against each other with a succession of increasingly higher prices until only one remains.
• B) a bid is announced, and if no buyer accepts the bid in a given period of time, a new, slightly lower, bid is announced; this procedure continues until a bidder accepts the announced price.
• C) each bidder submits a price that is known only to that bidder; bids are opened and the highest (lowest) bid is accepted.
• D) each bidder submits a price that is known only to that bidder; bids are opened and the highest (lowest) bidder wins, but the transaction occurs at the second highest (lowest) price.
• E) none of the above.

---

Definitions:

Aggregate of Individuals

A collection or group of individuals considered as a whole for the purpose of analysis but without considering the intricate interactions or relationships among them.

Share Characteristic

Having a trait, quality, or attribute in common with others or between multiple entities.

Key Element

A fundamental component or aspect that is essential for the functioning or success of something.

Interpersonal Connections

The emotional, psychological, and physical links that form between people through direct or indirect interactions.