In Dutch style auction, the current price is changed periodically by the system. The participants need to wait for the bidding level that is acceptable for them and then place a bid at that level.
The first firm that accepts the proposal given by the system will be the firm that comes 1st in the tender, and the tender will then close. In some special cases, the requested product might be shared between multiple suppliers. In such case, the ranking will continue to be designated. The bidding level will continue to change for the remaining firms. The tender will end for those firms that accept the bidding level and the tender will be finalized when the number of bids determined in the tender setup is reached.
According to the structure of the tender, the bidding level may rise or fall automatically in Dutch style tenders.
Let’s review a Dutch style tender by using an example of a process where the bids rise periodically.
In this example tender, the bidding level starts at 60.000 USD and increases by 4.000 USD every minute. One minutes after the start of the tender, the current level is 64.000 USD and the current price can be seen in the price box.
To place a bid, you just need to click on the Accept the Bid button and then click on OK.
When the process is finalized, the bidding button will be passive.