Lowest unique bid auctions are a type of online auction where the item goes to the person who bids the lowest unique amount. Researchers found that these auctions can be profitable if bidders don't value the item the same as the seller. If some bidders make short-sighted decisions, the auction can be even more profitable. The seller can also send private signals to bidders about their bids, which can impact the outcome. Real auction data supports these findings, showing that these auctions can be successful and that bidders may not always make rational choices.