You're the highest bidder, at $10, in a second-price auction for inventory within Display & Video 360. The second-highest bidder bids $6. What will you pay for these impressions as the auction winner?

In a second-price auction, the winner pays a price equal to the second-highest bid plus a nominal increment (often $0.01). This mechanism ensures that the winner pays only slightly more than what the next-highest bidder was willing to pay, rather than their full bid. Therefore, with a winning bid of $10 and a second-highest bid of $6, you will pay $6.01. Paying $10.00 or $10.01 would occur in a first-price auction, where the winner pays their exact bid or slightly more. Paying $6.00 would mean you pay exactly the second-highest bid, which isn't standard in second-price auctions where a small increment is added.