Each bidder submits one private bid; the highest bidder wins and pays its own bid, while losers pay nothing. A multi-unit version can award one item to each of the highest bidders, each paying its own bid. In a monotone symmetric equilibrium, a bidder can imitate another type's bid when checking incentive constraints.
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A first-price sealed-bid auction is a type of auction where bidders submit their bids without knowing the bids of the other participants. The key features of this auction format include: 1. **Sealed Bids**: Bidders submit their bids in a sealed manner. This means that once bids are submitted, they cannot be changed, and participants cannot see how much other bidders have offered.