Uniform price auction
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A uniform price auction is a multiunit auction in which a fixed number of identical units of a commodity are sold for the same price. The buyers in the auction bid a maximum price p they are willing to pay per item, and the number of units they want to purchase at that price. Typically these bids are sealed - not revealed to the other buyers until the auction closes. The auctioneer then serves the highest bidder first, giving them the number of units requested, then the second highest bidder and so forth until the supply of the commodity is exhausted. All bidders then pay a per unit price equal to the lowest winning bid (the lowest bid out of the buyers who actually received one or more units of the commodity) - regardless of their actual bid.
Some variations of this auction have the winners paying the highest losing bid rather than the lowest winning bid.
For a technical analysis of this type of auction, see for example (Krishna 2002, p. 169).
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