Auction Dictionary
( Bidera Auction help center glossary )

Yankee-Dutch Auction is a different form of Multiple Item Auction. Seller puts a number of identical items for sale.

Main difference between Yankee-Dutch Auction and regular Dutch Auction lays in the way winning bidders are determined. In Yankee-Dutch Auction all winners pay the price they were willing to bid by themselves.

As an example, Seller A puts up 5 pens for Yankee-Dutch Auction at $1 starting price. Buyer B enters bids for 1 pen at $1, Buyer C bids for 2 pens at $1.50, Buyer D bids for 1 pen at $2, and buyer E bids last for 3 pens at $1. At close of auction, all buyers would get the pens, Buyer B would have to pay $1, Buyer C would get 2 pens for $1.50each, Buyer D would get 1 pen for $2, and Buyer E would only get one pen at $1.

If Buyer E had bid for 3 pens at $1.50, he would have gotten 2 of them at that price (Buyer B losing the auction). If Buyer E had bid 3 pens for $1.60, he would have gotten all 3 for $1.60, with Buyer C getting one pen for $1.50 and Buyer D still getting his at $2.

See also Dutch Auction for a different multiple item bidding system.