Petroleum Place Online Auction follows standard bidding procedures, where each lot is auctioned off to the highest bidder. Users try to outbid other users for the item(s) in the lot. At the end of the bidding, the highest bidder wins.
Proxy Bidding Definition
To make things even easier, Petroleum Place Auction utilizes an automatic
proxy bidding process. This means that when you enter your bid, you are entering
the maximum amount that you would be willing to pay for that item. Our
auction system will act on your behalf to bid the lowest amount needed to win
at any given time, up to the maximum bid that you specify. Your active
bid will be only as high as is necessary to remain the high bidder, and only
the active bid amount will be displayed on the product bid page.
A Proxy Bidding Example
Here's an example of how a proxy
bid would work. Let's say there is a $50,000 lot available, with bids starting
at $10,000 and a bid increment of $5,000. Assuming you are the first bidder,
you may determine that you would be willing to pay $40,000 for the property.
You enter $40,000 into the box next to the words Proxy Bid and press
the Bid button. The moment you enter your bid, the auction system updates
to make you the high bidder at $15,000. If no other user were to place
a bid, you would win the lot for $15,000 (assuming any minimum bid amount had been met).
However, if another bidder places a proxy bid for $25,000, the high bid
for that lot automatically adjusts to $30,000, or just enough to outbid
the $25,000 bid. So, in this example the new high bid would be $30,000,
and you would remain the high bidder.
Bidding Precedence