The article explores how bidders in auctions can be influenced by the prices paid by others, even if they don't win the item. The researchers looked at two types of auctions - first-price and second-price - to see how these price-externalities affect bidding behavior. They found that while the first-price auction is not usually impacted by these price considerations, the second-price auction is. Additionally, the second-price auction tends to magnify the effects of price-externalities more than the first-price auction does. This means that the two auction formats do not generate the same amount of revenue.