This system allows an interested party to submit the maximum amount they are willing to pay for an item in an auction. The system then bids on their behalf, incrementally raising the bid only as much as necessary to maintain the high bid, up to their specified maximum. For example, if an individual places a limit of $100 on an item, and the current high bid is $20, the system will initially bid $21 for them. If another person then bids $30, the system will automatically increase the original individual’s bid to $31, and so on, until either the limit of $100 is reached, or no other bids are received.
The described bidding approach offers several advantages. It provides convenience, as participants do not need to actively monitor the auction constantly. It also helps prevent overbidding, as individuals are less likely to get caught up in the heat of the moment and exceed their intended spending limit. This approach has become a standard feature across many online auction platforms, facilitating wider participation and more efficient price discovery. Its origin lies in the need to streamline the auction process and offer a more user-friendly experience in the increasingly digital marketplace.
