A Dutch auction is a type of auction where the auctioneer begins with a high asking price and gradually lowers it until a participant is willing to accept the auctioneer's price, or a predetermined minimum price is reached. The first bid made at the current price level is the winning bid. This method is often used for selling items quickly and finding the highest price a buyer is willing to pay. It's commonly used in financial markets and online auctions for goods and services.