Proxy Bidding Proxy Bidding Proxy bidding is an automatic system of incrementally increasing a user's bid until it reaches a maximum amount. The initial bid remains low until another user bids above it. In return, the second bidder's offer will increase by an increment so that he or she outbids the first's. If all bidders take part in proxy bidding, then the winner of the auction will be the user with the highest maximum bid.
Proxy bidding ends when the auction surpasses the second highest maximum bid.