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Originally Posted by miniman82

It's called proxy (or auto) bidding: http://pages.ebay.com/help/buy/automatic-bidding.html

If you bid less than the reserve, it will show whateverthe starting bid is. If it's over the reserve, the bid sticks at the bid amount and it's game on from there.

I have always used the following guidelines.
In an auction with a reserve price, the bids are displayed at their maximum value until the reserve price is met. At that point, proxy bidding kicks in.