A second price sealed bid auction or Vickery Auction is essentially how eBay operates. The price paid is determined by the second bid plus the increment or overbid, whichever is less. An overbid by the same bidder does not mean that bidder pays more if there are no other bids. He is merely raising his MAX bid if you will.
However, that is not the way that our traditional BST auctions operate.
Every bid is open for all to see. The auctions are first bid auctions, sold to the highest bidder for the price of the highest bid. Retracting a highest bid after the auction is over should not be condoned by any seller.
Any variance from the first bid open auction model by the seller should be clearly stipulated by the seller in the original post or listing. I have done this on occasion without a problem, but 99% of the BST auctions are intended to be sold to the highest bidder for the amount of that bid. Bidding errors should be rectified immediately and not after the auction is over.
