In a discriminatory auction, what do winning bidders pay?

In a discriminatory auction, the winning bidders pay the price they individually offered, which is referred to as the winning bid price. This means that each successful bidder pays the amount they bid, rather than a uniform market price or a common lowest price. This auction format allows bidders to express their true valuations of the item being auctioned, and they only pay what they were willing to pay for it.

The mechanism of a discriminatory auction creates a situation where different winners might pay different prices based on their respective bids. This can lead to more competitive bidding as participants try to secure the auctioned item at their desired price point, allowing for greater expression of individual valuation.

The other options refer to concepts associated with different auction types. For instance, the "lowest successful price" typically aligns with a uniform price auction, where all winning bidders pay the same lowest successful bid price. Market price may imply a general equilibrium price determined by supply and demand, while offer price is more related to the initial asking price before any bids are made. In the context of a discriminatory auction, these terms do not accurately reflect the payment structure employed.