Conversely, under proxy bidding, the price paid is determined only by competitors' bids and not by the amount of the new bid; this eliminates the economically rational incentive to place a bid below the amount one is willing to pay or to place multiple increasing bids.
In contrast, under proxy bidding, the price paid is determined solely by competitors' bids and not by the amount of the new bid; this eliminates the economically rational incentive to submit a bid below one's willingness to pay or to place multiple escalating bids.