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google skillshop certification
You're entering a second-price auction for sports inventory. You're the highest bidder and bid $5.00. The second-highest bidder bids $4.00. As the auction winner, what will you pay for these impressions?
Correct: $4.01
In a second-price auction, the winner does not pay their own bid, but instead pays just slightly more than the second-highest bid. In this scenario, you bid $5.00 and the second-highest bidder offered $4.00. Because you are the highest bidder, you win the auction, but the price you pay is only one minimal increment above the next highest bid rather than your full bid amount. Therefore, you would pay $4.01, which is just enough to beat the $4.00 bid while still being below your maximum willingness to pay.