What is a "descending price auction" and how does it work?
A descending price auction is a listing where the price slowly declines until someone buys it or the minimum price is reached.
When making a listing the seller chooses the starting price and a minimum price. The listed price is slowly lowered. At any point a buyer can purchase the video game and the listing ends.
Screenshot of auction
Benefits of a descending price auction
To Seller
- Save time: No need to spend time maintaining competitive prices.
- Sell faster: Listing can end anytime. No need to wait a fixed period of time like traditional auctions.
- No more guessing: What should the discount be for "writing" on your video game? Let the market decide.
To Buyer
- Better prices: Auctions generally sell for less than fixed price listings.
- Get video games faster: No need to wait for an auction to end. You can buy it immediately.
Example of a descending price auction
Seller lists a video game with these prices:
Starting price: $40
Minimum price: $25
- Starting price: $40
- 2 days later: $39
- 6 days later: $37
- Someone decides to buy at $37
- Buyer pays and listing is closed