So the key thing is that there is no proxy bidding in Dutch Auctions. In my illustration, Mr A had to pay $1000 per lot because he bid on all 5 lots. If he just bid $1000 per lot for 4 lots, he would win 4 lots at $3.00 per lot, and Mr D would win one lot at $3.00 per lot."

Keep in mind also, If Mr. A bids $1,000 per lot for 4 of the five lots, if there are no other bids, Mr. A pays the full $4,000 not the starting bid price.