I agree with the replies that in the end each item is going to sell for whatever the most interested person is willing to pay, despite the bid increments.
Personally, as almost exclusively a buyer (and of low-pop things infrequently available), I'm perfectly happy if the bid increments are enormous, so as to dissuade other bidders from even bothering to be in the way of something I want.
This would support the thesis of the comments about lower increments increasing action, and be the opposite of OPs suggestion that small increments are good for the buyer---depends on whether a buyer's primary interest is the lowest possible cost, or increasing the odds of definitely being the ultimate winner.
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