After both participants have put in their initial bids, logically it doe not make sense for them to stop bidding up the price. For example, if participant A bids 90 cents, which is followed by a $1 bid from participant B, participant A can either bid $1.01 and lose 1 cent or drop out of the auction and lose 90 cents. Rationally, the bid should be placed. Participant B is now left in a similar situation where he can bid $1.02 or drop out, resulting in respective losses of 2 cents or $1. The bidding process would theoretically continue to perpetuity as both players stay committed to the losing cause.