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Auction sniping

Auction sniping is the practice, in a timed online auction, of placing a bid likely to exceed the current highest bid (which may be hidden) as late as possible—usually seconds before the end of the auction—giving other bidders no time to outbid the sniper. This can be done manually, by software on the bidder's computer, or by an online sniping service.Online services claim that their use decreases the failure rate of the snipe, because they have more reliable servers and a faster Internet connection with a less variation in latency, allowing the bid to more reliably be placed close to the deadline.Legitimate, non-sniping bidders may object to sniping, claiming that it is unfair to place bids at a point when it is impossible or unfeasible for other bidders to evaluate and possibly counter the bid, causing them to lose auctions even though they would have been willing to meet the winning bid amount. Bidders sometimes object to sniping when multiple identical items are listed as a separate lot, or on breakup auctions, where items that constitute a set are broken down and sold separately, as they must wait to find whether their maximum bid on one lot has been exceeded before being in a position to decide whether to bid on another.While some people disapprove of auction sniping, it is not forbidden by the rules of many auction sites. For example, it is permitted by eBay. eBay Germany banned automated sniping services in 2002, but the ban was declared illegal by Berlin's County Court, and revoked.One attempt to defeat automated bid sniping software is requiring bidders to pass a CAPTCHA test prior to entering their bid. This ensures that all bids are entered manually. Some software can read some CAPTCHAs, potentially neutralising the protection.

[ "Generalized second-price auction", "Vickrey auction", "Eauction", "Revenue equivalence", "Vickrey–Clarke–Groves auction" ]
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