What is a 'withdrawn bid'?

A 'withdrawn bid' refers to a bid that has been retracted by the bidder prior to the conclusion of the auction. This means that the bidder recognizes that they no longer wish to participate in that bidding process and officially communicates their decision to retract their bid. It’s important to understand that this action typically must be taken before the auction closes, as bids may not be retracted once the auction has ended.

This concept is crucial in auction environments because it allows bidders the flexibility to change their minds, often due to changes in their circumstances or reevaluation of the item's value. Other options do not accurately depict the nature of a withdrawn bid; for instance, an automatically accepted bid implies it doesn’t require the bidder's restatement, while a bid placed on behalf of someone else does not involve individual agency of the retracting bidder. Lastly, the notion of a bid being eligible for a refund relates more to post-auction issues rather than the act of withdrawing a bid itself.