a 10% bump over market price quickly adds up to a high rate of price increases simce that bumped price helps form the new, higher market price which is then bum

a 10% bump over market price quickly adds up to a high rate of price increases simce that bumped price helps form the new, higher market price which is then bumped up by the auction process even higher. In addition, the process being described is NOT a "sealed bid first price auction" as the seller opens the bids and requests rebids without disclosing the current winner or top bid. The only reason to do this over a normal auction of that type is to trick people into thinking they didn't win, so they bid higher.