A Dutch auction is a type of auction where the auctioneer starts with a high price that gradually decreases until a buyer accepts the current price. This method encourages quick decisions, as bidders must act fast to secure the item before someone else does. It’s often used for selling perishable goods, like flowers or fish, where time is of the essence. In contrast to traditional auctions, where prices rise as bidders compete, a Dutch auction creates urgency by lowering the price. This unique approach can lead to efficient sales, benefiting both sellers and buyers by reducing the time spent in the auction process.