Proxy Bidding - How it works
Proxy bidding is an implementation of an English second-price auction used on eBay, in which the winning bidder pays the price of the second-highest bid plus a defined increment.
To activate proxy bidding, you first must check to ensure you have bid increments set up to define the amount which the bid will jump to in the case a bidder has entered a proxy max bid.
Here is how it works:
Say for example, a domain is in auction with a starting bid price of $12.99
If bidder A places a bid of $20.00 for the domain, our system will start his bid at $12.99 and bid up to $20.00 automatically on his behalf.
When bidder B visits the auction, he sees the current bid price as $12.99. If bidder B decides to place a bid for $14.00, he will be outbid immediately by bidder A, and the new minimum bid will be $15.00. In order to outbid the first bidder, he would need to bid at least $20.01.If bidder B places a bid for $20.00, which matches bidder A's maximum bid amount, then bidder A would still be the high bidder, but the new minimum bid would be $21.00.