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.

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

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 $950, they only paid $650. This is the market price: the price at which there are enough buyers willing to pay for the item.

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 Dixie Mech without having to resort to the aftermarket.

Stolen (and edited) from Keycult with their permission.