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?
$5.01
$4.01
$4.00
$5.00

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Explanation: 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?
Explanation: In a second-price auction, the winning bidder pays the amount of the second-highest bid, plus a minimal increment. In this scenario, where you bid $5.00 and the second-highest bid is $4.00, you will pay $4.01 for the impressions. This pricing model encourages participants to bid the true value they place on the inventory, as the winner only pays slightly more than the second-highest bid. It promotes fair competition and ensures that the winning bidder secures the impressions at a price closely aligned with the market demand.

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