I don't understand this line of reasoning. I don't do auctions, but if I did, it would be because I want that item. When I want something, I never have an absolute hard price ceiling; if I'm willing to pay $10000, I'm willing to pay $10000.01. I can't imagine
anyone who would be happy to pay $X for an item but not $X + $0.01.
Like, if I'm at a store and an item costs $500, and I bring it to the checkout and the cashier says "oh sorry that was mislabeled, it's $500.01 not $500", there is no world in which I go "okay never mind then, $500 was my max". There does not exist a situation where I've decided I want something at price $X, but would not buy it at price $X + $0.01, because $0.01 is absolutely negligible.
So where does this fantasy of an absolute max price come from?
Like, if I'm at a store and an item costs $500, and I bring it to the checkout and the cashier says "oh sorry that was mislabeled, it's $500.01 not $500", there is no world in which I go "okay never mind then, $500 was my max". There does not exist a situation where I've decided I want something at price $X, but would not buy it at price $X + $0.01, because $0.01 is absolutely negligible.
So where does this fantasy of an absolute max price come from?