In a Dutch Auction, the auctioneer starts the auction at a very high price, and slowly decreases the price until the goods are sold to a bidder willing to pay the price offered by the auctioneer. This leads to a very efficient auction mechanism as it has a finite length in both time and monetary value - the highest price is the starting price (rather than infinity in the traditional auction) and the lowest price is zero. Also, auction participants are likely to pay the highest price they can afford to pay for the goods in a quicker time frame. This is because as an auctioneer decreases the price for the goods, the deal becomes more favourable for more auction participants. Thus there is competition to take the earliest bid one can afford, otherwise, being cheeky and waiting for a cheaper deal may cost you the goods to be claimed by another participant. Therefore this results in a very efficient system in both capital and time.