In a second-price auction, the winning bid is the highest bid in the auction, but the winner pays the second highest bidder’s bid, plus $0.01. For example, if the top bid is $5, and the second highest bid is $4, the winner would pay $4.01. |
second-price auction
In a second-price auction, the winning bid is the highest bid in the auction, but the winner pays the second highest bidder’s bid, plus $0.01.
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