Why can’t an individual place a bid of 10,000$ on a pen, knowing they will only pay the last biggest bid of 10$, and no one can top their offer, because no one will pay that price?
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You *could*, but imagine what happens if two (or more people) have the same “bright” idea…you bid $10,000 “knowing” that you’ll only pay $10. Except your buddy has the same bright idea and bids $100,000 just to screw you, and now you’re paying $10,000 for a $10 pen.
You might say, “Well, screw *him*, I’m bidding $200,000!” and now you’re in a death spiral. And the auctioneer is rubbing his/her hands in glee.
The only sensible thing to do to prevent this is to bid as much as you’re willing to pay, but not more, which is the entire point of an auction.
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