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[quote="juangrande"]1.  If the current price (second highest bid plus a bid increment) is higher than the bid you attempt to place, it will be rejected by eBay and there will be no record of your bid in the bidding history.  If the high bidder later retracts their bid, the result will be the same as if you never attempted to bid.  That is why bid shielding is unethical.

2.  If your bid is recorded by eBay; that is, your bid is at least as much as the current price, then your bid will be in line to be the high bid if a later higher bid is subsequently retracted.  eBay's system is very reliable and I have never seen it fail.  However, allowing last-minute retractions (such as in the bid history referenced in my previous post) allows bid shielding to subvert eBay's bidding system.

3.  Losing by one penny does not imply that eBay's bid increment rule was violated.  Remember that the current price of an auction is a bid increment more than the second highest bid and that the high bidder's bid is often higher than the current price.  This means that it is often possible to make a bid higher than the current price (so that eBay accepts the bid) and only one penny more than the high bidder's bid.  That's what you experienced when you lost by one penny.[/quote]

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