[orijing]

You're describing the generalized second price auction (GSP) which is NOT incentive compatible, which means the optimal strategy isn't to bid truthfully. VCG is.

[whymauri]

You are correct. I wasn't very clear/am very tired.

That being said... GSP on one item is VCG, no?

[marcinzm]

As I understand it, GSP on a single item is just a standard second price auction which is truthful.

[hdkrgr]

That's correct.