[capturing today's conversation at Prebid - since I didn't raise this, please feel free to edit or expand]
If one DSP submits their highest bid with a frequency cap that exceed what the client knows, this eliminates an opportunity to fill the publisher slot from that DSP.
This issue is compounded when the same DSP submits the same bid for the same campaign across different SSPs for the same slot's bid request (likely without knowing they are bidding against themselves].
A potential solution is that the DSP sends an array of bids, not just top bid.
However, this may further crowd out the auction of ineligible bids all of which have exceeded the buyer's frequency cap. This forces the publisher's SSP to choose a lower paying ad, than what the DSP would have sent had it known its top-n ranked ads were ineligible for frequency capping.