Abstract: In a method for providing proxy-based online Dutch auction services, an auction server or manager receives bid messages from a set of auction participants during the course of an auction. Each bid message may include a participant ID, a quantity requested value, a current proxy value indicating a maximum amount that the participant corresponding to the participant ID is willing to pay, and a partial quantity acceptance flag. The auction manager ranks or prioritizes bids in accordance with participants' current proxy values; determines current auction winners and losers and allocates offered items accordingly; determines a new current bid amount; and automatically adjusts participant bid values in accordance with participants the new current bid amount as well as the participants' current proxy values and status as winners or losers.