Question: You want to enter a fixed first-price auction for inventory across exchanges within Display & Video 360. You're the highest bidder at $10. What will you pay for the impressions?
- $5.00
- $10.00
- $9.99
- $10.01
Explanation
A first-price auction charges the winning buyer the amount of their winning bid. In Display & Video 360, first-price auction inventory across exchanges clears at the bid price rather than a price based on the next-highest bidder. The highest eligible bid wins the impression and pays that submitted amount. With a winning bid of $10.00, the final price is $10.00.
Why the other options are incorrect
$10.01 is incorrect because a first-price auction does not add an increment above the winning bid.
$5.00 is incorrect because the clearing price is not reduced to a lower unrelated amount.
$9.99 is incorrect because the buyer pays the full winning bid, not just below it.
Source for verification
https://support.google.com/displayvideo/answer/3289702
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