Wednesday, July 21, 2010

Vickrey Auction

What is the "Vickery Auction"?

A Vickery Auction is a type of sealed-bid auction, where 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. The auction was created by William Vickery. The type of auction is strategically simillar to an English auction, and give bidders an incentive to bid their true value.

Sourced from http://nn. wikepedia. org/wiki/vikery_auction

I am very interested in the bidders who win that don't need to pay the highest price they ever given, but the second highest bid which was given by his/her competitors. I am wondering whether other commerical websites like ebay, amzon, best buy, etc have followed this rules. So I will log on one of them, and check how it works in a few days. But first I should find some goods which I am interested, right?

3 comments:

  1. Yeah man thats right, the most awsome thing on auction is to win with a small price.

    ReplyDelete
  2. Thanks man, the most awsome thing on beautiful girls is to win their hearts without pay any price. Kidding.........

    ReplyDelete