What is proxy bidding?

Proxy bidding is a bidding system commonly used in online auctions. With proxy bidding, bidders can enter the maximum amount they are willing to pay for an item and the auction system automatically places bids on their behalf, incrementally increasing the bid until the maximum amount is reached.

The advantage of proxy bidding is that it allows bidders to remain competitive in auctions without constantly monitoring the bidding activity. Once the maximum bid is entered, the bidder can leave the auction and the system will continue to place bids on their behalf until their maximum amount is reached.

Proxy bidding helps to prevent bidding wars and allows bidders to bid with confidence, knowing that they will only pay up to their specified amount. However, some bidders may find it frustrating that they are outbid by small increments in the final moments of an auction.

Overall, proxy bidding can make the auction process more convenient and efficient for bidders, while also increasing the likelihood of reaching the true market value of an item.