>If my max bid is $12, I'm at $9.99, then the next thing I see is someone else has bid and I'm at my max of $12. They know what they bid, and if the proxy was less than one increment. I DON'T know what they bid. They may have bid exactly $11.50.

Larry,

This is not the scenario which Robert was talking about. He was referring to the situation where the bid increases by less than 1 full increment. The situation you refer to the bid increased from $9.99 to $12.00 which is more than one full bidding increment.