A bidding scenario with the use of proxy bids
Starting Bid – T900
Reserve – T2000
1. Bidder 1 places a proxy bid of T1100
2. The bid history will log Bidder 1’s bid of T900 as it was the starting bid, the next acceptable bid will increase by a bid increment (T25) to T925
3. Bidder 2 places a bid of T1025 (which is lower then bidder 1’s proxy)
4. Bidder 2’s bid will log as T1025 (the increments increased by T25 to T1025) and be finished that stage of bidding as their bid is lower then the proxy
5. The system will automatically bid on behalf of the Bidder 1 as they set a proxy
6. Bidder 1’s proxy will be listed in the Bidding History as one bid increment higher then bidder 2’s bid, which is T1075
7. The next highest bid will be one bid increment higher then the last bid listed (T1075), which is T1125
8. Bidder 3 lists a bid of T1250
9. Bidder 3’s bid is logged at T1125 (next acceptable bid), bidder 2 is knocked out as their proxy bid has been beaten, and the next acceptable bid is listed at the next acceptable bid increment which is T1175
10. Bidder 1 comes in again and bids T1240
11. Bidder 1’s new bid is logged at T1225 (which is the highest bid that can be registered by increasing the last acceptable bid using the bid increments T1175 + T50). The proxy that was placed by Bidder 3 of T1250 will display with (proxy) next to it, Bidder 1 was unsuccessful in his bid attempt as it was not high enough
12. The next available bid will be set at T1300 which is one bid increment higher then the last highest bid
13. Bidder 2 tries again and places a bid of T2500
14. Bidder 2’s bid logs at T1300 (the last available bid) and the next acceptable bid is T1350, bidder 3 has now been outbid
15. Bidder 1 tries again and places and places a bid of T2025
16. The bid history logs T2000 (which is the highest acceptable bid) and Bidder 2’s proxy logs at T2050 (proxy), which is the next bid increment higher then bidder 1’s attempt, and bidder one loses again
17. The next acceptable bid will be T2100
18. No one else bids
19. Bidder 2 wins the item as it is higher than the reserve of T2000, at the amount of T2050 which was the last bid logged not the T2500 proxy that was placed