Vickrey Auction

A Vickrey auction, also known as a sealed-bid second-price auction, is a type of auction where bidders submit written bids without knowing the bid of others. The highest bidder wins, but the price paid is the second-highest bid. This auction was first described by William Vickrey in 1961 and has been used since 1893 by stamp collectors. Vickrey auctions are strategically similar to English auctions and incentivize bidders to bid their true value. While the auction is studied in economic literature, it is uncommon in practice. The Vickrey–Clarke–Groves auction is a generalized variant that is incentive compatible.

https://en.wikipedia.org/wiki/Vickrey_auction

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