Posted By:
Matt"The simplest example is this: if you only want to bid on one lot, and you have an absolute max in mind for that lot, then it makes no sense not to bid on that lot earlier at your max. Not bidding early because you know it's ending later serves no purpose. The only purpose served by waiting is if you are bidding on more than one lot and you don't want to commit too early before you see how they play out over time."
That's not correct - assume the following in your simple example:
1) The max you want to bid on a lot would be $3250.
2) The lot is currently at $2750 being won by someone else.
The purpose served by waiting there is if someone else is willing to bid $3000, you can then win it at $3250; otherwise, if you don't wait and bid now at $3000, there may be someone else out there who, like you, is also willing to bid up to $3250 and you lose.