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3 July, 23:33

The second-price auction model

a. determines how much the second-highest bidder will be charged

b. charges the highest bidder only a penny more than the bid of the second-highest bidder

c. is for keywords with low-priced CPCs because no other bids were placed for that keyword

d. is used for price changing that occurs every second

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Answers (1)
  1. 4 July, 01:59
    0
    The correct answer is the option B: charges the highest bidder only a penny more than the bid of the second-highest bidder.

    Explanation:

    To begin with, the model of ''the second-price auction'' is a non-truthful auction mechanism in which every bidder places a bid but with the little particularity that the one who has the highest bid, and therefore the one who gets the first slot, only pays the price bid by the second highest bidder, and this last one only pays the price bid by the third highest bidder and so on. Therefore that this auction mechanism is non-truthful because the bidder does not pay the price he said he would, but he pays the price bid by the other person.
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Home » Business » The second-price auction model a. determines how much the second-highest bidder will be charged b. charges the highest bidder only a penny more than the bid of the second-highest bidder c.
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