What is the recommended minimum bid increment in an auction?

The recommended minimum bid increment in an auction is generally around 5-10% of the previous bid. This range strikes a balance between encouraging competitive bidding and not overwhelming potential bidders with excessively large jumps in price. A smaller increment can lead to more engagement from bidders, as they feel that they have a reasonable chance to win the auction with each increase that feels manageable.

In practice, this allows for a smoother flow of the auction process, as it promotes participation while still helping to increase the final selling price in an organized manner. The increment size can also be adjusted based on the value of the item being auctioned, ensuring that it remains relevant and effective in maintaining bidder interest throughout the auction.

In contrast, the other options suggest increments that could either be too small or excessively large, which might deter bidding activity or lead to quick escalations that may push bidders out of the competition.