Each bid raises the price by $0.01.
The auction clock restarts usually from 6 seconds (sometimes anywhere between 5-10 seconds) every time someone bids.
If no new bids are placed before the clock runs out, the last bidder wins.
When you win, you only pay the winning price and your bids are returned to your account.
Before you can take part in an auction you need to buy bids or a Bid Pack. Bids are currently 50 to 75 cents each.