Vickrey auction investopedia forex


A Vickrey auction is a type of sealed-bid auction. Bidders submit written bids without knowing the bid of the other people in the auction. The highest bidder wins but the price paid is the second-highest bid. This jnvestopedia of auction is strategically similar to an English auction and gives bidders an incentive to bid their true value. The terms Vickrey auction and second-price sealed-bid auction are, in this case only, equivalent and used interchangeably.

The highest bidder is usually declared the winner of the bidding process. This sets it apart from the more common English auction, also known as the open ascending price auction, where participants can make multiple bids and bid against each other. You feel cheated.




Vickrey auction investopedia forex

Vickrey auction investopedia forex