Auction House Selling Price

I read somewhere that the next sale on a particular item in the auction house can take place one of two ways: 1) either the lowest sell price or 2) the first person to list at a specific price.

For example, for item XYZ, there are 3 people currently with those items up for sale in the AH. Person 1 has it up for 100g and his bid was put up first amongst the three. Person 2 has it up for 100g also. Person 3 has it listed for 50g.

So, am I right in understanding that if someone comes along and bids 100g on it, the next sale will go to Person 1. If someone bids anything less than 100g and more than or equal to 50g, then the sale goes to Person 3?

Sorry if this is old hat for you guys. Just seems like an important piece to have a handle on!

Nope, the algorithm always "sells" the lowest-priced item first. Only in the case of a tie for the lowest priced item does it go to the one listed first.

Gotcha. Maybe I misunderstood that latter part of it when I read it initially. Thanks for clarifying!