Why can’t an individual place a bid of 10,000$ on a pen, knowing they will only pay the last biggest bid of 10$, and no one can top their offer, because no one will pay that price?
In typical implementations of second-price auctions the bids are sealed. So you don’t know what the second price is. So you don’t “know” you’re only paying $10. For all you know it could be $9,999.
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