Vickrey Auction is a closed one-round second-price auction, where participants make their bids for an item without knowing the bids of other bidders. The person who offered the highest amount pays for the item at the rate, the second-highest after it.
As a result of the fact that neither the participants nor the seller know the internal assessments of competitors and are paid not the highest bid, but the next one, the objectivity of the assessment is achieved. Overpricing as a result of lack of knowledge of the true value of the goods or because of the actions of a fraudster is excluded.
The algorithm was proposed by economist William Vickrey.