Describe 'increment bidding'.

Increment bidding refers to the process of placing bids in predetermined, small increments rather than making large jumps in bid amounts. This method allows for a more gradual and controlled bidding process during auctions, enabling participants to slowly increase their offers without overcommitting to a high price at once.

Using incremental increases helps create a competitive atmosphere among bidders, as they have the opportunity to respond to one another's bids while keeping the auction dynamic. This bidding style can enhance the overall experience and make it more strategic, as bidders must consider both their maximum willingness to pay and the pricing movements of their competitors.

In contrast, other options such as one-time bidding, time limitations, or decreasing bid amounts do not accurately describe the nature of increment bidding, which fundamentally revolves around the systematic increase of bids.