That particular problem appears to apply only to auctions where a single party is both placing a bid and also receiving (at least some of) the price that the winner pays?
(Note: I believe I understand how second-price auctions work in simple cases, but I’m not clear exactly how that’s being applied to the rent-splitting scenario in the OP, so you may be assuming some context that I haven’t picked up.)
That particular problem appears to apply only to auctions where a single party is both placing a bid and also receiving (at least some of) the price that the winner pays?
(Note: I believe I understand how second-price auctions work in simple cases, but I’m not clear exactly how that’s being applied to the rent-splitting scenario in the OP, so you may be assuming some context that I haven’t picked up.)