An "economically rational" bidder will therefore bid the maximum amount they are willing to pay on their first bid, and never raise their bid.ĮBay's approach, however, reveals the bidder's limit to rival bidders early in the auction, which can sometimes artificially inflate the price of the item higher than its actual intrinsic value, and ultimately encourages the practice of auction sniping. In a standard English auction, the winner pays the amount of their bid-regardless of competitors' bids-and it is therefore desirable to place a bid that exceeds the current highest bid by the smallest possible increment.Ĭonversely, under proxy bidding, the price paid is determined only by competitors' bids and not by the amount of the new bid this eliminates the economically rational incentive to place a bid below the amount one is willing to pay or to place multiple increasing bids. (903) 326-5802 live online bidding powered by proxibid list your ranch on this website for 25 land and farm features tens of thousands of rural properties.
#Proxie bid plus#
The "current highest bid" (defined as second-highest bid plus bid increment) is always displayed. Though similar to a Vickrey auction, the bids are not sealed.
It differs from a Vickrey auction in that bids are not sealed the "current highest bid" (defined as second-highest bid plus bid increment) is always displayed.ĮBay uses the term proxy bidding to refer to their implementation of an English second-price auction, in which the winning bidder pays the price of the second-highest bid, in addition to a defined increment. 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. ( Learn how and when to remove this template message) ( May 2015) ( Learn how and when to remove this template message) Statements consisting only of original research should be removed. Please improve it by verifying the claims made and adding inline citations. This article possibly contains original research.
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