The article explores how bidders in auctions are influenced by the prices paid by winners, even if they don't win the item. The researchers found that in auctions where bidders care about prices, the type of auction format used can impact the final outcome. Specifically, in a first-price auction, the winner's identity-independent price externalities don't affect the outcome, but in a second-price auction, they do. However, identity-dependent price externalities affect both auction formats. Overall, the second-price auction worsens the effects of price externalities.