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1 How Do Penny Auction Sites Work? - MapleMoney
https://maplemoney.com/how-do-penny-auction-sites-work/
They're making money on individual bids. When you participate in a penny auction, you pay per bid. In most cases, bids cost between 30 cents and ...
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2 How Penny Auctions Work: Winning Bids Don't Come Cheap
https://www.retailmenot.com/blog/how-penny-auctions-work.html
“Penny auction websites profit from the fees they collect for each bid on an auction, which is what allows them to sell their items for, on the ...
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3 How do penny auctions make money? [closed]
https://economics.stackexchange.com/questions/10561/how-do-penny-auctions-make-money
In a penny auction, each bid raises the going price of an object by just one penny. However, placing such a bid is costly whether or not you ...
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4 Penny Auctions - How to sell a $180 tablet for ... - CuriousGnu
https://www.curiousgnu.com/penny-auctions
This works because unlike eBay each bid costs money (e.g., $0.40) no matter if you end up winning the auction or not. You have to be the ...
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5 The Hidden Secrets Behind Penny Auctions | by DealDash
https://medium.com/@auctionobserver/the-hidden-secrets-behind-penny-auctions-fffea79d158f?source=post_internal_links---------5----------------------------
Penny auction sites like DealDash are able to turn a profit by buying brand new, but overstock products, promoted items, or liquidation stock at ...
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6 How do penny auction sites make their money? - Quora
https://www.quora.com/How-do-penny-auction-sites-make-their-money
Unlike Ebay, a Penny Auction portal makes its revenue by selling bid packages. In order to participate in a Penny auction you need to purchase bid packages ...
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7 How to Build a Penny Auction Website? - Merehead
https://merehead.com/blog/build-penny-auction-website/
Pay per bid. In this model, the penny auction receives a portion of the profit from all bids made by the bidders, for example 5% or 10%. If ...
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8 Penny Auctions Are Scams - The Dough Roller
https://www.doughroller.net/personal-finance/penny-auctions-are-scams/
The winner of the auction, depending on how many bids they placed to win the TV will usually walk out a winner. If the cost of making a bid is ...
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9 Penny Auctions | Online Shopping - Consumer Reports
https://www.consumerreports.org/cro/2011/12/with-penny-auctions-you-can-spend-a-bundle-but-still-leave-empty-handed/index.htm
From the sites' perspective, the higher bidding goes, the more they stand to make. And the amount can be staggering. An example is a $650 stereo ...
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10 Can You Make Money Participating in Penny Auctions?
https://www.thepennyhoarder.com/make-money/side-gigs/can-you-make-money-participating-in-penny-auctions/
If you've never used or seen a penny auction site, let me break it down for you: there are various items, some big ticket and some small ticket, ...
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11 Penny Auction Scam: How it Works - Stephenson Law Firm
https://utahjustice.com/penny-auction-scams
Penny auction websites purport to offer consumer goods at steeply discounted prices. They advertise pretty much everywhere that consumers can ...
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12 Bidding fee auction - Wikipedia
https://en.wikipedia.org/wiki/Bidding_fee_auction
A bidding fee auction, also called a penny auction, is a type of all-pay auction in which all participants must pay a non-refundable fee to place each small ...
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13 Are Penny Auction Sites Seen On TV For Real? - Forbes
https://www.forbes.com/sites/nextavenue/2014/05/13/are-penny-auction-sites-seen-on-tv-for-real/
Once you've bought your bid package and can start bidding, items usually start selling for $0.00 and increase by a penny every time someone bids ...
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14 Penny Auctions: You Have to Pay to Bid With No Guarantees
https://www.nextavenue.org/penny-auctions-you-have-pay-bid-no-guarantees/
Penny auctions might be a fun way to try to get big-ticket items at reduced prices. But in many ways, a penny auction is more like a lottery ...
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15 How Does A Penny Auction Work? - YouTube
https://www.youtube.com/watch?v=iTDZ84xghec
Web Design Service - Michigan
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16 Penny Auctions: Is It Worth it? - Cornell blogs
https://blogs.cornell.edu/info2040/2016/10/17/penny-auctions-is-it-worth-it/
Unlike regular auctions, each bid costs a certain amount of money. If a user does not win the auction, not only does the user not get the ...
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17 Selling a dollar for more than a dollar? Evidence from online ...
https://www.sciencedirect.com/science/article/abs/pii/S0167624516300531
Unlike eBay, penny auction websites sell products themselves, using rules similar to the following. First, a bidder must pay a small nonrefundable fee (e.g., ...
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18 Penny Auctions Further Explained - Sitejabber
https://www.sitejabber.com/resources/further-explaining-penny-auctions/
In this way, the real money is made on the bids, not on the eventual price of the item. Even though the actual bid might only be for a cent, the ...
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19 How penny auction websites can leave you with a hole in your ...
https://www.theguardian.com/money/2012/jan/28/penny-auction-websites
Methods vary but the message at penny auctions is the same – make the winning bid and you can pick up expensive goods at a fraction of their ...
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20 Is DealDash a Scam or Can You Get Legit Bargains?
https://www.makeuseof.com/dealdash-scam/
Penny auctions are popular because the final price paid for products tends to be very low. After all, it takes 100 bids for the price to break a ...
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21 Penny Auctions are Unpredictable - Collegio Carlo Alberto
https://www.carloalberto.org/wp-content/uploads/2018/11/no.305.pdf
selling cash can give the seller an order of magnitude higher or lower ... Penny auctions are very popular because it seems like you can get something.
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22 Penny Auction Merchant Accounts Don't Have to Cost a Pretty ...
https://secureglobalpay.net/penny-auction-merchant-accounts-dont-cost-pretty-penny/
Penny Auction Merchants give customers chances to walk away with high-cost items at discounted prices. What is needed to get Approved and ...
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23 Penny auction sites: The house always wins
https://www.clarionledger.com/story/money/personal-finance/consumerwatch/2017/04/23/penny-saved-lesson-learned-bill-moak-column/100742942/
With each bid, the cost rises by a penny or more. With many auction sites, you're not necessarily buying the item; you're buying the right to ...
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24 Penny Auctions Review: The Catch That Works Against You ...
https://moneypantry.com/penny-auction-sites-review/
This means you will be paying for any items you bid on regardless of whether you get the item or not. You won't get your bids back or your money ...
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25 Site Owners Are Clear Winners in Penny Auctions.html
https://scambusters.org/pennyauctions.html
So, to keep it simple, if a bid costs, say, $1 a time, a package of 100 bid credits will set you back $100 and each time you bid and up the auction price by a ...
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26 Read Online For How Penny Auction Help To Make Money
https://cfconventions.org/Data/Trac-tickets/120.html
Penny auction techniques are terribly vital in successful leading dressing to the network. That is a typical confusion to gain these advantages is really a ...
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27 Penny Auctions: Legalities and Realities - HG.org
https://www.hg.org/legal-articles/penny-auctions-legalities-and-realities-20471
If you bid 500 times at $1 a bid - which, at a one penny hike in price per bid, will only raise the final price of the item by five dollars - the real price to ...
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28 How penny auction sites (can) work? - SWExperts
http://swexperts.com/articles/how-penny-auction-sites-can-work/
After all they do not pay for the credits themselves! And even if the price of an item gets to high leaving no real buyer, the website can still ...
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29 Are Penny Auctions Illegal Gambling or Legit Auction?
https://blog.wavebid.com/are-penny-auctions-illegal-gambling-or-legit-auction/
Q: Are There Hidden Charges in a Penny Auction? A: The charges may not be exactly hidden, but the majority of the money made from penny auction sites is by ...
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30 The Secret Of 1 Penny Ebay Auctions And How To Earn ...
https://www.warriorforum.com/articles/792140-secret-1-penny-ebay-auctions-how-earn-money.html
But even if you don't make a profit, you still shouldn't get your hopes down. You see, the free advertising that you get from your backend customer will allow ...
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31 DealDash Business Model | Is DealDash a Scam? - Feedough
https://www.feedough.com/dealdash-scam-business-model/
Penny auction (also known as bidding fee auction) involves participants to pay a non-refundable fee to buy a bid. That is, you pay a non- ...
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32 Penny Auctions Vs. Traditional Auctions: Differences And ...
http://www.facauctions.com/penny-auctions-vs-traditional-auctions-differences-similarities/
For instance, they may auction off an iPod for 1 week with a minimum bid rule of $20. However, there will be stiff competition to get such a low price on the ...
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33 IAMA Owner of penny auction website AMA - Reddit
https://www.reddit.com/r/IAmA/comments/vxg7b/iama_owner_of_penny_auction_website_ama/
Basically you pay a fee to increase the price of an auction by a penny. Every auction starts at a price of zero so let's say it cost 50 cents to bid on a $25 ...
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34 Penny Auctions – a bit of analysis | Steve Bennett blogs
https://stevebennett.me/2009/07/31/penny-auctions-a-bit-of-analysis/
Auctions websites or penny auctions are based on the mechanism of the bidding system because of the competition. And some how customer may take ...
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35 Penny products – tipo.io
https://tipo.io/index.php/kb/penny-products/
For example: Admin can add 3 types of penny products as below. If the customer wants to place the bid on an active auction, he must buy one of the penny product ...
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36 Penny Auctions - Get Safe Online
https://www.getsafeonline.org/personal/articles/penny-auctions/
When the auction expires, the last person to have placed a bid wins the item and also pays the final bid price, which is supposedly much lower than the item's ...
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37 Penny Auction Reviews - Legit or Scam?
https://www.opportunitychecker.com/penny-auction-reviews-legit-or-scam/
As mentioned above, you must pay for the bids you place on penny auction sites, which means that people participating in the auction will end up spending money, ...
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38 Penny Auctions Fight Foreclosures during the Depression
https://livinghistoryfarm.org/farminginthe30s/money_10.html
bids. All were ridiculously low. The proceeds for that first "Penny Auction" were $5.35, which the bank was supposed to accept to pay off the loan.
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39 Penny Auction Reviews: Quibids, DealDash, OrangeBidz
https://www.bestpennyauctionsites.org/penny/
Penny auction sites are a form of auction where users pay to participate by purchasing bid packages. The winner of each penny auction is the past bidder to ...
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40 How To Start Penny Auction Business - Merkeleon
https://www.merkeleon.com/wiki/penny-auction-launch/
How To Make Money On Penny Auctions? Dollar Auction ; Furthermore, the auction doesn't end. Another critical zone ; is when a bid is about to ...
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41 Penny Auctions - Toomas Hinnosaar
http://toomas.hinnosaar.net/pennyauctions.pdf
auctions do not use any randomization devices, equilibria in penny auctions ... In this kind of auction, the auctioneer sells cash to the highest bidder,.
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42 Should Penny Auctions Be Regulated under Gaming Law?
https://www.cato.org/regulation/summer-2014/should-penny-auctions-be-regulated-under-gaming-law
A typical penny auction works as follows: A valuable item is put up for auction at an attractive starting price. A countdown timer demarcates the tentative end ...
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43 Penny Auction Site Reviews - Does It Really Work?
https://doesitreallywork.org/penny-auction-site-reviews/
That's the first way a site owner makes money. Then they've got the auctions themselves. Even though people might be thinking they're getting a deal because ...
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44 You Might Not Save on Penny Auctions
https://www.theledger.com/story/business/columns/2015/01/24/you-might-not-save-on/8208095007/
It took 5,000 bids to increase the price to $50 (1 cent x 5,000), and if each of those bids cost 50 cents to buy, the auction site has taken in ...
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45 Your Strategy Guide: How to Win and Profit from Penny ...
https://www.amazon.com/Your-Strategy-Guide-Profit-Auction/dp/1453785051
Your Strategy Guide series - How to deploy strategies to make you a successful bidder in the hot new trend of penny auctions. Read more.
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46 Penny Auction Merchant Account - Shark Processing
https://sharkprocessing.com/penny-auction-merchant-account/
The big difference between penny auctions and traditional online auctions is that each bidder has to pay a fee to place each one of their bids, even if they don ...
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47 Auctions | Washington State
https://www.atg.wa.gov/auctions
Some fraudulent penny auction sites have used “bid bots” or “shills” to make bids on behalf of the website. These websites use the phony bids to ...
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48 ZeekRewards case: How does a penny auction work?
https://www.bizjournals.com/triad/blog/2012/08/zeekler-case-how-does-a-penny-auction.html
A penny auction participant buys bids ahead of time for a certain amount of money, say, $1 each (though bids can often be had for much less ...
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49 Penny Auctions: They're Gambling - Coding Horror
https://blog.codinghorror.com/penny-auctions-theyre-gambling/
Since the sites make the bulk of their revenue from the purchase of bids, they profit most when they feature a product that elicits a bidding ...
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50 Virtual Currency Penny Auction | Indiegogo
https://www.indiegogo.com/projects/virtual-currency-penny-auction
Every auction item is listed for the same flat price. Instead of using real money to bid on the items the credits is used to make the bid. Everybody gets a ...
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51 Pat Foran: Beware penny auction websites | CTV News
https://www.ctvnews.ca/pat-foran-beware-penny-auction-websites-1.714387
According Anthony Giorgianni "The sites can make a lot of money when there's a bidding war because they charge you every time you bid. A typical ...
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52 The Sunk-Cost Fallacy in Penny Auctions
http://faculty.haas.berkeley.edu/ned/penny_auction.pdf
as players make similarly escalating financial commitments (in the form of bid costs) as the auction continues. To better understand if sunk costs are ...
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53 An Empirical Study of Online Penny Auctions - ResearchGate
https://www.researchgate.net/publication/228533468_An_Empirical_Study_of_Online_Penny_Auctions
We find that the Buy-Now feature does appear to be increasing the retention of users and that QuiBids can make a profit with the current system.
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54 The Economics of Penny Auctions - Sound Ideas
https://soundideas.pugetsound.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1028&context=summer_research
Since Swoopo makes its money by maximizing number of bids placed, they need a way to keep people bidding steadily throughout the auction ...
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55 The Legality of Penny Auctions - Internet Lawyer Blog
https://www.internetlawyer-blog.com/legality-penny-auctions/
Unlike traditional online auction websites like eBay, all penny auction participants must pay to play. Thus, it is common for losing bidders to ...
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56 The Sunk-Cost Fallacy in Penny Auctions - kyle woodward
https://kylewoodward.com/blog-data/pdfs/references/augenblick-the-review-of-economic-studies-2015A.pdf
effect also could be playing a role in penny auctions, as players make similarly ... Proposition 3 can also be interpreted as an “instantaneous zero-profit”.
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57 Penny Auctions: Legit or Scam?
https://askbobrankin.com/penny_auctions_legit_or_scam.html
Let's Do the Math ... Here's a simplified example of a penny auction for a laptop that retails for $1000. You have a group of bidders, each paying ...
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58 Penny auction site | The IT Law Wiki - Fandom
https://itlaw.fandom.com/wiki/Penny_auction_site
A penny auction site is a new type of online auction website where instead of just paying the winning bid for an item, each bidder also pays a fee to make a ...
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59 Financial Education: How Much Do Penny Auctions Really ...
https://www.financialfinesse.com/2011/01/12/financial-education-how-much-do-penny-auctions-really-cost/
A penny auction is just like any other auction, except the bids increase in one or two cent increments. So, if you are bidding on an iPad that ...
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60 The Sunk-Cost Fallacy in Penny Auctions - JSTOR
https://www.jstor.org/stable/43868457
effect also could be playing a role in penny auctions, as players make similarly ... Proposition 3 can also be interpreted as an "instantaneous zero-profit".
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61 Class Calls Penny Auction Site DealDash a Scam
https://www.courthousenews.com/class-calls-penny-auction-site-dealdash-scam/
He says he spent still more money on the bids themselves, but lost most of the auctions, and even when he “wins,” he and others spend far more, ...
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62 What's a Penny Social? Get More From this Fundraising Event
https://www.onecause.com/blog/penny-social/
Penny socials are relatively easy-to-plan fundraising events, making the auction experience more doable for smaller organizations and groups.
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63 DealDash Penny Auction Sued for Running 'Perverse Lotteries'
https://www.nbcnews.com/business/consumer/dealdash-auction-site-accused-running-perverse-lotteries-n771166
But in order to make any bids, customers must buy from the site “bid packs” — bundles of several hundred to several thousand bids sold for 13 ...
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64 An Empirical Study of Online Penny Auctions - Brown CS
https://cs.brown.edu/research/pubs/theses/ugrad/2012/estix.pdf
on an auction by auction basis, penny auction sites have problems ... retention of users and that QuiBids can make a profit with the current ...
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65 Penny Auctions are Predictable - Full-Time Faculty
https://people.cs.uchicago.edu/~ravenben/publications/pdf/auction-ht18.pdf
Most in this group failed to make money from auc- tions, losing a median of $0.20 per auction. • Budget Bidders (55.8%). They only place a few ...
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66 Penny Auctions Will Cost You - Truth in Advertising
https://truthinadvertising.org/articles/penny-auctions-will-cost/
If each bid cost $1 and bids were accepted for one penny at a time, the auction site makes $100 for every $1 increase in the winning price.
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67 Online penny auctions fall out of favor - CT Insider
https://www.ctinsider.com/business/article/Online-penny-auctions-fall-out-of-favor-3177873.php
The first company to offer penny auctions, Entertainment Shopping AG in Munich, racked up profit after it was founded in 2005, according to ...
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68 Analysis of All-Pay Auction Models - SSRN Papers
https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=2518348
i). Penny Auctions - These are timed, pay per bid auctions where each bid costs some money. ... We will discuss how the websites make money.
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69 Penny Auction Merchant Accounts - Instabill
https://instabill.com/ecommerce-industries/penny-auction-merchant-accounts/
Hence, the need for penny auction merchant accounts has never been greater. It's easy for penny auction merchants to make money between the sale of items and ...
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70 Why Penny Auction Sites Could Be Dangerous and Possibly ...
https://kbhilferlaw.com/why-penny-auction-sites-could-be-dangerous-and-possibly-illegal/
Unlike a site like eBay, in a penny auction, bidders must pay for the right to bid. So they have spent money for the opportunity to bid on ...
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71 The Behavior of QuiBids and Its Users - Computer Science
http://www.cs.rpi.edu/~magdon/courses/casp/projects/Zaman.pdf
QuiBids runs a business based off the idea of penny auctions, ... by permitting persons to play games of chance for money and/or make a wager upon the.
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72 Tips to save valuable pennies at Penny Auctions | Jude
https://original.newsbreak.com/@jude-1592226/2817638776729-tips-to-save-valuable-pennies-at-penny-auctions
Like said before Penny auctions are sites that gives opportunity to people bid their pennies in return of shopping. The winner from all the ...
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73 9 Secrets to Making More Money on Your eBay Auctions
https://www.kiplinger.com/slideshow/business/t057-s001-9-secrets-to-make-more-money-on-your-ebay-auctions/index.html
Opening your auction at $0.01 (dubbed the “penny auction”) will encourage early and frequent bidding by shoppers hoping to snag a deal, and they ...
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74 How to Make Money with TripleClicks and PriceBenders ...
https://www.calameo.com/books/0016721218f0d20cab6b6
4 then purchase the item they won at the closing auction price when the timer hit zero. The final selling price of the item is the price of the product at ...
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75 Penny Auctions Online Bidding - Apps on Google Play
https://play.google.com/store/apps/details?id=com.penny.auctions.app.online&hl=en_US&gl=US
You have to try it to believe it! Our offers are awesome! We can offer ENORMOUS DISCOUNTS at high-end brands name merchandise directly to the consumer due ...
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76 Penny auctions nothing more than an illegal game of chance
https://clark.com/scams-rip-offs/penny-auctions-nothing-more-illegal-game-chance/
But it's really just an illegal game of chance in my book. Here's how these so-called penny auctions work: You enter bids for the items being ...
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77 Are Online Penny Auctions Actually Gambling? - Techdirt.
https://www.techdirt.com/2008/12/30/are-online-penny-auctions-actually-gambling/
People keep bidding, because the costs seem so low — but since everyone has to pay to bid, the companies ends up making a ton of money ...
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78 I worked for one of the biggest penny auction sites. I'll address ...
https://news.ycombinator.com/item?id=12337269
So, for instance, you spend 10 bids and get lucky and win a 2500 bid pack. When bidding on the auction, an outside observer can't tell if you're using a bid you ...
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79 How to Start a Penny Auction Business - BrandonGaille.com
https://brandongaille.com/how-to-start-a-penny-auction-business/
Penny auction companies make their money from selling bid packages, not from actually selling the products. A consumer buys a package of 25 ...
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80 Penny Auctions - Get Safe Online Saint Kitts and Nevis
https://www.getsafeonline.kn/personal/articles/penny-auctions/
When the auction expires, the last person to have placed a bid wins the item and also pays the final bid price, which is supposedly much lower than the item's ...
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81 Penny Auctions - Get Safe Online Papua New Guinea
https://www.getsafeonline.org.pg/personal/articles/penny-auctions/
When the auction expires, the last person to have placed a bid wins the item and also pays the final bid price, which is supposedly much lower than the item's ...
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82 Penny Auctions - ResearchSpace@Auckland
https://researchspace.auckland.ac.nz/handle/2292/37638
From sellers' points of view, unlike traditional auctioneers who earn from the winning bids, bidding fees are the primary source of revenue for penny auction ...
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83 How does DealDash work & make money?
https://bstrategyhub.com/how-does-dealdash-work-make-money/
Get all the details about DealDash that is like other penny auction site which makes money by selling bids. Click for more details!
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84 Penny auctions: How good a deal? | ABC7 San Francisco
https://abc7news.com/archive/8400294/
He explains, "The sites can make a lot of money when there's a bidding war because they charge you every time you bid. A typical bid costs 50- ...
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85 Penny Auctions - Get Safe Online Nauru
https://www.getsafeonline.org.nr/personal/articles/penny-auctions/
When the auction expires, the last person to have placed a bid wins the item and also pays the final bid price, which is supposedly much lower than the item's ...
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86 Bid now! How penny auctions get into our heads
https://expertlywrapped.wordpress.com/2010/07/15/bid-now-how-penny-auctions-get-into-our-heads/
Each time a bidder drives the price up a penny, more time is added to the clock. When the auction does finally end, the site operator pockets ...
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87 Bidding 101 Penny Auction Guide
https://www.pennyauctionsites.com/strategy/basics/
Penny auctions are in the business of selling bids. Not products. Utilizing a pay-to-bid format, penny auctions make money each time someone clicks the 'bid' ...
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88 How Penny Auctions Pay Big - PR Newswire
https://www.prnewswire.com/news-releases/how-penny-auctions-pay-big-202486181.html
The prices of the items in the Buy Now feature drop continuously with each successive credit placed, so the longer a Penny Auction goes on for, ...
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89 Are online penny auctions a form of gambling? - NTU > IRep
http://irep.ntu.ac.uk/26656/1/PubSub3120_Griffiths.pdf
The auctioneer makes money in two ways: the fees for each bid and the payment for ... “Penny auctions might be a fun way to try to get big ticket items at ...
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90 Penny Auction Website Issues - Consumer policy research ...
http://www.ic.gc.ca/app/oca/crd/dcmnt.do?id=4400&lang=eng
Those wishing to participate in an auction buy “tokens” in advance that they use to bid. One “token” costs between 30 cents and a dollar. The ...
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91 Why you should avoid every new MLM penny auction
https://behindmlm.com/mlm/choosing-a-business/why-you-should-avoid-every-new-mlm-penny-auction/
Penny auctions work on the idea that the company recoups its money lost on selling an item well below RRP from all the losers who used their ...
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92 Penny auctions from a game theoretic point of view
https://info207.w.uib.no/2014/11/28/penny-auctions-from-a-game-theoretic-point-of-view/
It works by having everyone participating pay a bidding fee, usually to the auctioning website, which gives you X amount of bids. Each auction ...
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93 Penny auctions: how good a deal? | 9news.com
https://www.9news.com/article/money/business/penny-auctions-how-good-a-deal/73-334615385
KUSA - Penny auction websites advertise big bargains with the lucky winners walking off with televisions, small kitchen appliances and other ...
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94 Penny auctions: any Dopers ever made it work?
https://boards.straightdope.com/t/penny-auctions-any-dopers-ever-made-it-work/568795
Penny auction sites can offer extremely good bargains, if you do your research and plan ahead. There's a plethora of sites to choose from, with ...
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95 Penny Auction Sites Info - KS Blog
https://www.kevinsimon.co.uk/penny-auction-sites-info/
Penny auctions are a fairly new auction model that is quickly becoming very popular in the US. Penny auctions permit individuals to do just what it entails, win ...
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96 Online Penny Auctions Revive the Pestilence of Unregulated ...
https://digitalcommons.law.seattleu.edu/cgi/viewcontent.cgi?article=2192&context=sulr
nates how penny auction websites make a profit. In this hypothetical auc- tion for another smartphone, bidders place a total of 999 bids, for a $10.
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97 What to Expect on Penny Auction Sites - ABC News
https://abcnews.go.com/Business/expect-penny-auction-sites/story?id=14323671
"You're not betting or wagering anything in an auction. You place the bid you paid for. It's not paid for a pool that you get back if you win.
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