Exactly you pre-determine how much you want to pay. If you get outbid at any time, then obviously the new bidder was willing to pay more than you.
Here is an example, I won this last night in the last 10 seconds, before I bid it was at 46 so the bidder must have set his maximum to probably 66.99
http://cgi.ebay.com.au/ws/eBayISAPI....#ht_664wt_1091
So I dropped 101.11 in the last 10 seconds. Ofcourse that was a risk, if the bidder was willing to pay $100 then ouch. But he wasn't and I was confident enough that would raise their maximum bid..
I had planned to win this because a day earlier I bought this to put in it
http://cgi.ebay.com.au/ws/eBayISAPI....ht_1703wt_1091
Hopefully no one on here was the previous bidder![]()