Ebay question, on incremental bidding

[jag5311]

I don't quite understand the concept behind incremental bidding. here is my current auction
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=2066489286

It started at $2.00 , then one of my friends made a bid (i don't how much he was willing to use as his maximum bet) but it went to 2.25. Then someone else bid, and it jumped to like 5.00. However, about a day later, my friend was again back on top of the bid with like 10 bucks. I thought that once someone outbid you, they are done, so I can't figure out how he was back as the highest bidder, but then someone outbid him and he is done, i believe.

Basically, this is how it goes from my understanding.

My auction starts off at 2.00, so someone puts in that they are willing to pay $30 for my domain, so it ups the auction to 2.25. Then someone comes by and says they are willing to pay $45 for the domain, so wouldn't that wipe out the $30 dollar guy?

If you can explain this incremental bidding to me, I would appreciate it.

Thanks
bryan

 

[DomainPairs]

In your example the bid would end up at $31 (if increments are $1 at that level) this is one increment over the current high bid. If your friend had left a bid of $30.06 then the current high bid would be $31.06. If the bid had been $29.99 then your friends bid would have been $30 (because it can't bid above your maximum). This is called proxy bidding by Ebay.

 

[jag5311]

Ok, sorry about that. Disregard that example. Lets look at what is really there. I started with 2.00, and it is currently at 12 i believe with 5 bidders. So if there was an explanation, that means people are only bidding about 12 bucks or so for the domain.

Thanks
bryan

 

[Drewbert]

>So if there was an explanation, that means
>people are only bidding about 12 bucks or so for
>the domain.

No. The highest or the second highest bidder has bid $12.

If that bid is from the 2nd highest bidder, the highest bidder may have a high bid recorded (say $10,000), but it'll never get any higher than $12 until someone other than the highest bidder bids it up from $12.

 

[jag5311]

I got ya. Thanks Drewbert

Bryan