If the bidders at a second-price auction have true values of $78,$72,$66,and $65,the item will sell for
A)$78
B)just under $78
C)$72
D)just over $72

Name: If the bidders at a second-price auction have true values of $78,$72,$66,and $65,the item will sell for A)$78 B)just under $78 C)$72 D)just over $72
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Question

​If the bidders at a second-price auction have true values of $78,$72,$66,and $65,the item will sell for
A)​$78
B)just under $78
C)$72 
D)​just over $72

Quizplus · Accepted Answer

In a second-price auction, the highest bidder wins but pays the second-highest bid. Therefore, with bids of $78, $72, $66, and $65, the item will sell for $72, the second-highest bid.

​If the Bidders at a Second-Price Auction Have True Values

If the Bidders at a Second-Price Auction Have True Values