What is "proxy bidding" in the context of auctions?

Proxy bidding refers to a system where a bidder designates another person to place bids on their behalf during an auction. This arrangement allows the designated individual to act in the best interest of the original bidder, potentially winning the item for them without the bidder needing to be physically present during the auction. The proxy can place bids up to a set maximum amount determined by the original bidder, which helps ensure that the bidder competes effectively without exceeding their budget.

This method is advantageous because it allows for participation in auctions where the bidder might not be available to respond in real time, and it streamlines the bidding process, especially in competitive or timed auctions. In contrast, other options like bidding via phone or methods that limit the number of participants do not capture the essence of proxy bidding, which emphasizes delegation of bidding authority.