Auction Vickery

A Vickrey auction or second-price auction is a type of closed auction where the lot is awarded to the highest bidder but at the price given by the second highest bidder. They are named after William Vickrey, who demonstrated that this type of auction encourages bidders to bet on the real value they attribute to the lot.

A Vickrey auction only concerns the case where a single indivisible lot is auctioned. In this system, all the bidders submit their proposal at the same time, without knowing the amounts proposed by the others. The lot goes to the highest bidder, but the latter must pay the price offered by the second highest bidder.