Vickrey auction |
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Definition
Type of sealed bid auction where the successful buyer or seller pays only the second-best price. This mechanism serves as an incentive for the potential buyer to offer a value that is the true value of the item in his or her judgment. Invented by the Canadian Nobel-laureate economist William Vickrey (1914-96). Also called second bid auction or second price auction.
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Vickrey auction is in the Agreements & Contracts, E-Commerce, Internet & World Wide Web and Purchasing & Procurement subjects.
Vickrey auction appears in the definitions of the following terms: second bid auction and second price auction
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