^That's how you actually should do it (and the best way to win)...you bid the absolute most you're willing to pay, not just keep bidding in increments. I've always done it this way; for example, if there's a ring I want (as random example) and it starts at $25.00, I'm not going to only bid $27.00, I'm going to bid the highest amount I want to pay, that way, if it goes over, I won't bother bidding again.
This is what it says on ebay about bidding:
Here's how bidding on eBay works:
When you place a bid, you enter the maximum amount you're willing to pay for the item. The seller and other bidders won't know your maximum bid amount.
eBay places bids on your behalf starting with the next bid increment for the auction. We'll bid as much as necessary to make sure that you remain the high bidder (or to meet the reserve price). We'll keep bidding for you until bidding reaches your maximum amount.
If another bidder has placed the same bid before you or a higher maximum bid, we'll let you know that you've been outbid so that you can place another bid if you want. However, if no other bidder has a higher maximum bid at the end of the auction, you win the item even if your bid doesn't go as high as your maximum bid. You could pay significantly less than your maximum price. This means you don't have to keep coming back to re-bid every time another bid is placed.