Vickrey auction
Subasta Vickrey
- Date
- 1961 · confidence high
- Place
- New York City, United States
- Credited to
- William Vickrey
- Field
- Knowledge & symbols
What it is
Sealed-bid auction in which the highest bidder wins but pays the second-highest bid, giving participants an incentive to bid their true value; described academically by William Vickrey.
What it led to
- Mechanism design and auction theory (1996 Nobel Prize in Economics)
- The generalized second-price auction used by Google and Yahoo! in online advertising
- Applications in radio spectrum allocation and public procurement