Quote Originally Posted by edz
FYI: What is very very common in eBay is self-bidding. Its, for many items and sellers, nearly the rule and not the exception. Sellers are motivated by psychology but also eBay's price structure to set the starting price low and self-bid the price up to the "true minimum". Many sellers watching a price go well beyond their original expectations can get greedy and push things "over the top". The second bidder is disappointed. It used to be the seller had fees to pay for something they did not sell. No longer! The official "second chance" offers provided via eBay are just one of eBay's, who get a percentage of the final price, measures to help encourage this kind of self-bidding greed. Since the markets are small they are, in this manner, easily manipulated and interestingly can results in general higher prices as those "disappointed" up their willingness to pay to win.
There is a name for this practice. It is called Shill Bidding. Shill Bidding is not legal on eBay. If you have evidence that a seller or a their confederate is shill bidding, send the evidence to eBay Safe Harbour.