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?
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For precisely that reason. If such a move were allowed, it would become a race for “Who can make the most outlandish bid the fastest”.
Many auctions would have to be declared Null from two people bidding astronomical sums, and neither wanting to actually pay the second bid.
This is also the reason that most “Second Price” auctions are blind/silent. You won’t bet insane sums if you don’t know what the second bid is. For all you know, someone already bid $700 when you would’ve gone $1000 but only wanted to pay $50. You’ll only bet what you’re comfortable paying, and only pay a reasonable “Second Price”
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