Definition of Vickrey auction:
Type of sealed bid auction where the successful buyer or seller pays only the second-best price. This mechanism serves as an incentive for the potential buyer to offer a value that is the true value of the item in his or her judgment. Invented by the Canadian Nobel-laureate economist William Vickrey (1914-96). Also called second bid auction or second price auction.
Meaning of Vickrey auction & Vickrey auction Definition