You have the winning bid at a second-price auction for inventory in Display & Video 360, at $12. The second-highest bidder bids $8. How much will you pay for these impressions?
$12.00
$8.01
$8.00
$12.01
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Explanation: You have the winning bid at a second-price auction for inventory in Display & Video 360, at $12. The second-highest bidder bids $8. How much will you pay for these impressions?
Explanation: In a second-price auction model within Display & Video 360, the winning bidder pays the price of the second-highest bid plus $0.01. Therefore, with the winning bid at $12 and the second-highest bid at $8, the winning bidder will pay **$8.01** for these impressions. This pricing mechanism encourages advertisers to bid their true value for impressions, as the winning bidder pays a price that reflects the perceived value by the second-highest bidder, promoting a fair and competitive auction environment.
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