Second-price auction strategy
In a sealed-bid second-price (Vickrey) auction, what is the optimal bid?
Show hints (2)+
- The price you pay is set by someone else's bid.
- Ask: can changing your bid ever improve a winning or losing outcome?
Answer
Reveal answer →Final answer
Bid your true value - it is a dominant strategy
Create a free account to see the full worked solution and track your progress.
Interview format: Market Maker, Systematic & Data-Driven Trading