A Dutch auction is a type of auction where the auctioneer starts with a high price that decreases until a bidder accepts the current price. This method encourages quick decision-making, as bidders must act fast to secure the item before someone else does. Dutch auctions are often used for selling multiple identical items or perishable goods. In contrast to traditional auctions, where prices rise as bidders compete, Dutch auctions can lead to faster sales. They are commonly used in various markets, including flower auctions in the Netherlands and government bond sales. This format can benefit both sellers and buyers by reducing the time spent in the auction process.