Vickrey auction
= Vickrey auction
{wiki}
= Second-price sealed-bid auction
{synonym}
A single-item <auction> in which the highest bidder wins and pays the highest competing bid. Under private values and <quasilinear utility>, bidding one's valuation is a <dominant strategy>: if the competing maximum is below one's value, winning at that price is best; if it is above one's value, losing is best; equality gives zero utility either way. Thus truthful bidding is an ex post <Nash equilibrium>.