- In a reverse auction the price goes down at regular intervals until the item sells, or reaches some specified minimum.
- The seller specifies four things
- The starting price
- The amount to decrease the price per period
- Specified as either a percent or an absolute dollar amount
- The length of a period (in days)
- The price goes down at the end of each period
- The 'floor' which is a minimum value that it will not go beyond
- The floor is hidden, only the seller knows it, but they might tell you if you ask.