Source: wikibot/vickrey-auction
= Vickrey auction
{wiki=Vickrey_auction}
A Vickrey auction, also known as a second-price sealed-bid auction, is a type of auction where bidders submit written bids without knowing the other bidders' offers. The highest bidder wins the auction, but the price paid is determined by the second-highest bid. Key characteristics of a Vickrey auction include: 1. **Sealed Bids**: Bidders submit their bids privately and do not know the bids of other participants.