Functioning closer to the way a lottery runs’, using the term penny auctions is a bit of a misnomer. Bidders buy packages of bids based on a price set by the owner. The fee charged for a bid is in correlation to the \value of the item. A bidder may choose to buy as few as ten bids or as many as seven hundred. Each bid that you place reduces your packet by one bid.

Some caution must be applied. When bidding begins an item has no price, but an amount is applied with each bid that is made. If each bid is worth fifty cents, the cost will increase in increments of one half dollar. That bid also cost you an additional fee. If you were to continue bidding foolishly, you may win the item. Sadly, the  cost may be higher than what you would pay for the item outright.