How are increments / decrements enforced?

Modified on Sat, 4 Oct at 4:21 PM

To maintain the integrity of the bidding process and prevent minor, non-competitive bids, the system enforces predefined increments or decrements.

Reverse Auctions (Decrements): The system will not accept a new bid unless it is at least a specific amount lower than the current lowest bid. For example, if the decrement rule is set to $10, a new bid must be at least $10 lower than the current lowest bid. This ensures that each new bid is a significant move toward a better price for the buyer.
Forward Auctions (Increments): Similarly, in a forward auction, a new bid must be a specific amount higher than the current highest bid. This ensures that competition drives the price upward in a structured and efficient manner.

The system automatically validates each bid against these rules. If a bid does not meet the specified increment or decrement, it will be rejected, and the bidder will be notified.