Have to agree with Turnerguy’s approach. Don’t show your hand until the dying seconds. If you put your max bid out there early, a fool with auction fever or the seller’s bezzie will probably trump or match your bid.
The only time I bid early is when, nobody has bid on an item and the auction is approaching the final twelve hours, to stop the seller pulling the item early. I only cover the starting bid and hold back with my actual offer until the end. This is due to the amount of times I’ve watched items for almost a week and seen them disappear before the real action is about to take place.
You rarely see an item only go for the starting price, nowadays, as almost everyone snipes, so pulling the item seems daft to me. If you’re worried an item will underperform, in an auction, then list it as a BIN auction, as Kerley states.
Anyway, bidder 1 must have really wanted the item, as he won it, with a little help from bidder 2 and (what looked like) a genuine bid from someone else at the end.