Asked by Julie Wilson on Sep 24, 2024
Verified
First-price auctions have all the following properties EXCEPT
A) Highest bid wins
B) Highest bidder pays her winning bid
C) The item is won by the second-highest bidder
D) The price is set to the highest bid
First-Price Auctions
A type of auction in which the highest bid wins, and the winner pays the amount of their bid.
Highest Bid
The largest amount of money offered for a good or service in an auction.
Second-Highest Bidder
In auctions, the participant who places the second greatest bid, often relevant in contexts where the winner pays the price submitted by this bidder.
- Comprehend the principles and results of sealed-bid compared to open bidding processes.
Verified Answer
TA
Toseef Ahmad4 days ago
Final Answer :
C
Explanation :
First-price auctions do not involve the second-highest bidder winning the item. The highest bid wins and the highest bidder pays their winning bid. The price is set to the highest bid in a first-price auction.
Learning Objectives
- Comprehend the principles and results of sealed-bid compared to open bidding processes.