In Vickery auctions,the item is awarded to the highest bidder at a price set by
A)Highest bid
B)Second highest bid
C)Third highest bid
D)Cost

Question

​In Vickery auctions,the item is awarded to the highest bidder at a price set by
A)​Highest bid
B)Second highest bid
C)Third highest bid
D)​Cost

Quizplus · Accepted Answer

In Vickery auctions, the item is awarded to the highest bidder at a price set by the second highest bid. This encourages bidders to bid their true value because they won't have to pay the full price they bid. Thus, the winner will always pay less than what they bid, and the seller will receive a fair market value for the item being auctioned.

​In Vickery Auctions,the Item Is Awarded to the Highest Bidder

In Vickery Auctions,the Item Is Awarded to the Highest Bidder