if the bid was sitting on say $14.00 and the other person had a proxy bid of $15.01, you then bid $15.00 and you get outbid by the $15.01 because it was already entered as as proxy bid.

if that person had a proxy bid of $15.00 the high bid would have been $15.00, but it would have been his, not yours.

That is why it is sometimes better to go with a strange number like $15.37 on lower end chips.

Scott