It is equitable, but it is not efficient. At least this is better than a Vickrey auction though, where you would only get paid $5.01 and spend $45 (net loss) ra

It is equitable, but it is not efficient. At least this is better than a Vickrey auction though, where you would only get paid $5.01 and spend $45 (net loss) rather than see the bids and do nothing. (Or see the bids and lose, but get paid $40 rather than $5.01)