[bluedevil2k]

Google's auction was not actually a Dutch auction, but a second price auction. And despite the thought that it's the "perfect" way to do an IPO, the auction setup actually cost Google millions of dollars.

Here's a link to a more detailed explanation - http://optimalauctions.com/designing-a-better-google-ipo-auc... Tldr; demand is a curve, not a point (Note - I'm an auction design expert)