Other forms of auction include the Vickrey auction, or second price auction, where the highest bidder wins but pays only the second-highest bid.
Additionally, for any given click received, advertisers only pay one bid increment above the second-highest bid.
This is identical to the sealed first-price auction except that the winning bidder pays the second-highest bid rather than his or her own.
The envelopes are opened and the individual with the highest bid wins, paying a price equal to the second-highest bid.
The house will try to buy lots for absentees at the lowest possible price, which could be one standard increment above the second-highest competing bid.
Their offer was said to be the second-highest bid.
But there is a twist: the winner pays only the second-highest bid.
When the bids were opened, Ms. Hogarty's clients had the second-highest bid.
This means that no party has knowledge of another's bid and that the selling price is determined by the second-highest bid.
Industry insiders said the second-highest bid, $164 million, came from the Quantum Fund.
