That's the idea of bidding low and trying to get a deal. That's the idea of sniping an auction. That why people will watch a ten day auction until there are 15 minutes left, before placing a first bid.

Everyone is trying to get the lowest price for the item (except the seller of course)

So while it's true, the higest bidder always wins, it comes down to multiple people trying to bid as low as possible and still win. That's what sniping and software are all about.

Being the highest of the lowball bidders, wins.