How does the bidding work in a sample auction?
Lets suppose that were selling a backhoe loader in a Featured Auction which opens at €20,000 and has a bid increment of €500. The following gives an example of how the bidding for this auction might unfold.
- Bidder A starts the bidding by entering a maximum bid amount of €23,000. The IronPlanet auction system bids €20,000 on Bidder As behalf, which is the minimum amount required to put Bidder A in the lead.
- Bidder B enters a maximum bid of €20,500 in an attempt to take the lead. However, since Bidder A has a higher maximum amount, our auction system responds with a bid of €21,000 to maintain Bidder A's lead.
- Bidder C then joins the bidding with a maximum bid of €28,000. Our auction system first tries to bid on behalf of Bidder A at his maximum amount of €23,000. But, since Bidder C's maximum amount is higher, the system cannot keep Bidder A in the lead. The auction system then places a bid on behalf of Bidder C for €23,500, which is the minimum amount required to make Bidder C the high bidder.
- Bidder A then attempts to reclaim the load with a maximum bid of €25,000. But, since Bidder C's maximum amount is higher, our system responds to keep Bidder C in the lead with a bid of €25,500.
- No more bids are submitted to this auction, so Bidder C wins this Featured Auction at €25,500, even though his maximum bid amount was €28,000.
