What does 'proxy bidding' involve?

Proxy bidding involves a situation where a bidder designates another person or a system to place bids on their behalf. This arrangement is particularly useful for individuals who may not be able to attend an auction in person or who want to ensure that their maximum bid is placed without the anxiety of needing to be present at the moment the auction takes place. The designated individual or automated system will bid on the proxy bidder’s behalf, typically up to a predetermined limit that the proxy bidder specifies.

This method allows for more strategic bidding, as it can automate the process of competing against other bidders while ensuring that the bidder remains within their budget. It streamlines the bidding process and can help participants feel more secure in their bidding strategy.

The other options describe alternate processes that do not accurately capture the essence of proxy bidding. Direct personal attendance, secrecy in bidding, and automated starting bids are not reflective of the mechanism of having someone else or a system make the bids according to a specified limit set by the original bidder.