· Jiko Art
Descending (Dutch) auctions: a complete guide
TL;DR — A descending auction starts at a high price that decreases at regular intervals. The first buyer to accept the current price wins the lot. It is a transparent, no-bidding-war format, especially well suited to unique artworks.
Definition
A descending auction (also called a Dutch auction) is an auction format in which the price starts at a high amount set by the seller, then decreases at regular intervals on a known schedule, until a buyer accepts the current price or the price reaches a predefined floor.
Unlike a classic ascending auction, buyers do not outbid each other. There is only one decision to make: accept now, or wait. The first to accept wins the lot.
History and origins
The “Dutch” name comes from the flower markets of the Netherlands, where tulips and other cut flowers have been sold this way since the 19th century. Clock auctions in Europe (fish, fruit, produce) use the same mechanic: a clock hand sweeps down a dial showing the price, and the first person to press their button wins the lot at the displayed price.
The format is also used for some IPOs (Google sold its 2004 shares via a modified descending auction) and for government bond auctions in several countries. Its application to the art market remains rare, and is one of the things that sets Jiko Art apart.
How it works in practice
A descending auction is defined by four parameters:
- Start price — the initial ceiling, set by the seller based on the artwork’s perceived value.
- Floor price — the minimum accepted price. If no one buys before then, the auction closes without a sale.
- Decrease rate — how much the price drops at each step (an amount or a percentage).
- Interval — how often the price drops (minutes, hours, days).
At any moment, the current price is deterministic: you can compute exactly when the next step will happen and what the price will be. That lets buyers set their target price in advance and act without pressure.
Descending vs ascending auction
| Criterion | Ascending | Descending |
|---|---|---|
| Price direction | Up | Down |
| Buyer’s decision | Outbid | Accept the current price |
| Competition | Visible, simultaneous | None (first to accept wins) |
| Sniping risk | High | None |
| Next-price transparency | Unpredictable | Deterministic |
Why this format for art?
Classic art auctions suffer from two biases: speculative bubbles (the price overshoots participants’ true valuation when ego enters the room) and sniping (a bidder places their bid in the last seconds so others have no time to react).
The descending format resolves both:
- Seller side — the start price acts as a value signal without forcing an immediate sale at that level.
- Buyer side — each buyer sets their own threshold based on their own valuation, free from group psychology.
- Market side — the mechanism reveals the true collective interest range for an artwork, without the noise of bidding wars.
How Jiko Art applies it
On Jiko Art, every artwork is sold via a descending auction with a transparent split of the proceeds: 70% to the artist, 16% to an NGO chosen by the artist, and 14% to the platform. The start price, floor price, decrease rate, and interval are all set by the artist at auction creation.
Because the descent schedule is deterministic, buyers can precisely anticipate the upcoming prices and choose when to enter. See current auctions →
Frequently asked questions
What is a descending auction?
A descending (or Dutch) auction is an auction where the price starts at a high amount and decreases at regular intervals until a buyer accepts the current price, or until the price reaches a predefined floor.
How is it different from a classic ascending auction?
In an ascending (English) auction, buyers outbid each other and the price goes up. In a descending auction, there is no bidding war: the price drops on its own, and the first buyer to accept the current price wins the lot immediately.
Are descending auctions legal in France?
Yes. The descending-auction format is a recognised form of sale, regulated like any remote sale or online auction. It has historically been used by clock auctions in Europe (fish, flowers, fruit markets).
Why use a descending auction to sell an artwork?
The format eliminates speculative bidding and last-second sniping. The seller sets a ceiling and a floor that fit the artwork’s value; the buyer waits for the price to match their personal valuation and buys without competition.
What happens if no one buys before the floor price?
The auction closes without a sale. The artist can then re-list the artwork with adjusted parameters (start price, floor, duration), or take it down.
Can buyers know the next price step in advance?
Yes on Jiko Art: the descent schedule is deterministic (rate and interval are public), so the buyer can anticipate their entry point rather than react to other bidders.