| How it works: | | | | ranges from 10-25 cents (USD). With each bid the time |
| Firstly, players are to pay a certain specified amount to | | | | of the auction increases by 10-15 seconds and the |
| purchase bids. The amount is non-refundable. The | | | | price by 1-2 cents (USD). |
| auctions are then purchased with the help of these | | | | The main features that these bidding sites provide are: |
| bids. Each time the same process is repeated. For | | | | - Automatic bidding wherein bots provided by these |
| each usage of bid on an auction the cost of the | | | | auction sites bid on the player's behalf. They bid up to |
| particular item increases by a fixed amount. This in turn | | | | a maximum value. |
| also leads to extension of the deadline for that | | | | - Bid on Bids in which packs of bid are themselves |
| particular auction. It also gives a chance to the | | | | kept for bidding. |
| competing player to place or reform his/her bid in a | | | | - Discounts on bids for purchasing larger number of the |
| way extending the auction. The game can be | | | | same. |
| considered to be like a brinksmanship game. | | | | - Rookie auctions: These are for those players who |
| Brinksmanship is a strategy that involves pressuring | | | | have not won any auction. It guarantees that the |
| the opposition to walk back through creation of deadly | | | | player is made to bid with those who have themselves |
| or disaster situations without the actual implementation | | | | not one any auction before so as to make each |
| of the attributes associated with that situation. | | | | player win at least one auction. |
| Thus with each and every bid, the cost of the item | | | | Risks involved: |
| decreases. The player with the last bid wins that | | | | The main risk associated with online penny auction is |
| particular item or reward. | | | | that it is mostly assumed to be a regular auction. Users |
| Once the auction is finished, the auctioneer collects the | | | | or players with less knowledge of auctions may |
| final amount that is the sum of the actual cost of the | | | | therefore apply poor judgment while making bids. The |
| item and the amount spend on bids by the players. | | | | site makers themselves make the users easy target |
| Online auctions: | | | | by intermixing normal or authorized ads with the |
| Penny auctions are now also available online. A | | | | unauthorized ones. Also the legality of this auction |
| number of good sites have appeared in the recent | | | | provides the sites to get out of such matters easily. |
| years offering such type of auctions. The items kept | | | | Thus adequate knowledge of bidding should be |
| for auction are mostly consumer electronics like | | | | acquired before doing the same. |
| cameras, mp3 players, laptops etc. The cost of bids | | | | |