What is proxy bidding?

Proxy bidding is a method that allows a bidder to set a maximum bid amount they are willing to pay for an item at auction, without requiring them to continually monitor the bidding process. Essentially, the auction system automatically increases the bidder's bid in increments up to their maximum limit whenever other bids are placed, ensuring their presence in the auction up to their specified cap. This allows for a more strategic approach, as bidders can participate without having to actively dominate the auction in real-time.

This method benefits bidders by simplifying the process and enabling them to secure items more effectively without the risk of being outbid at the last moment, as the system manages the bidding for them, based on their predetermined maximum. This is particularly useful in online auctions where bidders may not be able to attend an event in person or might not want to remain engaged throughout the entire auction period.