In a Vickrey auction, a bidder's strategy:
A) is to bid what he or she would be willing to pay.
B) is to bid just slightly more than the next bidder.
C) is to bid just below the next highest bidder.
D) requires the bidder to understand game theory to bid properly.

Question

Quizplus · Accepted Answer

In a Vickrey auction, the dominant strategy for each bidder is to bid their true value or what they are willing to pay, as the highest bidder wins but pays the second-highest bid.

In a Vickrey Auction, a Bidder's Strategy