perhaps I'm stupid but... (re auctions)

I entered an L$ aution to bid for a plot of land. I did this by the proxy system where you set you maximum bid and system bids as necessary up to the maximum.

What I don't understand is when another proxy bidder comes along, doesn't that mean that a rapid bidding war is initiated with leapfrogging bids in a split second until the lower of the two maximums is passed? If this isn't the case, what are the safeguards?

The answer to your question is yes, it automatically bids on your behalf until you are maxed out if a another bidder puts in a higher maximum bid than yours. Also, you have to take into account the bid increments of the auction.

read this link, it does explain all.
http://usd.auctions.secondlife.com/odcs/custom.html?template=Glossary#Automatic+%28Proxy%29+Bidding

I think rather than inserting lots of bids, each at the minimum increment until it hits the lower of the 2 maxima, it goes straight to the lower. So for example, if I have the first bid with a maximum of $1000, the current price will be set to the minimum bid, say $500.

If you came in and saw the bid was $500, and bid $750, the current bid would automatically jump to $751, with me winning it. If you then increased your bid to $1200, it would then jump to the highest amount that would beat me - $1001.

So in a sense, the winner of an auction is determined by who bids the highest outright amount, but the amount they pay is actually determined by what the runner up bid.

I see...... Yes, I think it's clear to me now.