A Dutch auction is similar in an English auction, but rather than starting the bidding at a low price and increasing, in a Dutch auction the seller starts at a high price and gradually lowers the price until some buyer is willing to accept that price. (If multiple bidders accept the price, one is arbitrarily chosen as the winner.) More formally, the seller begins with a price $p$ and gradually lowers $p$ by increments of $d$ until at least one buyer accepts the price. Assuming all bidders act rationally, is it true that for arbitrarily small $d$, a Dutch auction will always result in the bidder with the highest value for the item obtaining the item? If so, show mathematically why. If not, explain how it may be possible for the bidder with highest value for the item not to obtain it.
A Dutch auction is similar in an English auction, but rather than
starting the bidding at a low price and increasing, in a Dutch auction
the seller starts at a high price and gradually lowers the price until
some buyer is willing to accept that price. (If multiple bidders accept
the price, one is arbitrarily chosen as the winner.) More formally, the
seller begins with a price $p$ and gradually lowers $p$ by increments of
$d$ until at least one buyer accepts the price. Assuming all bidders act
rationally, is it true that for arbitrarily small $d$, a Dutch auction
will always result in the bidder with the highest value for the item
obtaining the item? If so, show mathematically why. If not, explain how
it may be possible for the bidder with highest value for the item not to
obtain it.