If you bid only right before auction close, you can protect yourself from these folks who don’t really know what their max bid is but are willing to keep pushing the price up. If they had been the high bidder after their first attempt, would they have still put up the higher bid amount with which they ended? Also probably not. Over the years, I have seen many cases where one person places an initial high bid, and someone else bids over and over, never beating the original bid but pushing the final price up substantially. Another key difference between eBay and live auctions is the fixed ending time. This makes certain assumptions about the behavior of everyone else in the auction. Sniping really only makes sense in an auction that works like an in-person auction, where you pay the amount you bid, no matter what the losers bid. In that scenario, you want to bid the minimum amount that can win, because anything higher is a waste of money. That last posted bid is not my maximum, but one increment higher than the next-lower bidder’s maximum (often the sniper’s bid). As the auction draws to a close, I often see people jump in with last-minute bids, but I frequently win the auction anyway because the snipers are repeatedly bidding one increment higher than the last posted bid instead of the maximum they are willing to pay. I evaluate the item and bid the maximum I would honestly be willing to pay for it, even if I think I can get it for less. I’ve won a few auctions due to understanding this. In other words, you submit a high bid and if you win, you pay one increment higher than the next-lower bid, not the maximum you bid. Then if it’s not up to the maximum you provided, it will do it again if someone else outbids that amount. The system will use this to (effectively) automatically increase your bid by the auction’s fixed increment amount until it is highest. EBay sniping has always amused me because it’s not the last bid that wins, but the highest bid.ĮBay’s proxy-bid system, for those who are unaware, means you bid the maximum you want to spend.
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