For a single item, a Vickrey auction is an auction where participants submit bids privately and the winner pays the price set by the second-highest bidder. In the example of an auction with ten units available, the top ten bidders would pay the price set by the eleventh highest bidder.
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Example top bids
#1 - $900
#2 - $850
#3 - $850
#4 - $825
#5 - $800
#6 - $800
#7 - $775
#8 - $750
#9 - $710
#10 - $700
#11 - $650 ← The top 10 each pay $650
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Your bid represents the maximum amount you are willing to pay, but the actual sale price is determined by the other participants. In the example above, even though #1 bid $900, they only paid $650. This is the market price: the price at which there are enough buyers willing to pay for the item.
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Our auctions will take place as the last step of a release, after any FCFS sales or raffles. People can use this auction as another chance to win a board they really want and support Omnitype without having to resort to the aftermarket.
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​Stolen (and edited) from Keycult with their permission.

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