I read an article somewhere on the internet awhile about bidding strategy on eBay (If it's on the internet it must be true, right?) The conclusion was that bidding what you're willing to pay, but not until the very end was the most successful strategy in the long run. Early bids on an item attracts more bidding activity. If I am not going to be home when an auction is ending and bid early what I'm willing to pay, I NEVER get the item. Someone will sit there and peck away at my bid a dollar at a time until they get over me so I usually loose the item for a dollar.
To counter the problem of an early bid getting pecked at because you won't be available at the end of the auction, there is a strategy called Atomic Bidding where you make a bid much higher than you're normally willing to pay so hopefully the pecker (!) will quit at a still reasonable amount. You bid high enough to cover the possibilities but gamble that your bid won't actually be met in the fullest. The strategy usually works and you win the item, although at a premium price. The problem comes, as possibly in the case of the 118, when two Atomic Bidders collide, or an Atomic bidder collides with an addicted bidder who gets caught up in the moment and has to win at any cost. This situation causes the sale price to exceed sanity and frequently results in buyers remorse.
The GunBroker auction site has an interesting bidding rule that I'm surprised that eBay never picked up on. If there is a bid at the end, the auction automatically extends in time until there hasn't been any bidding activity for 10 minutes. Better circumstance for the sellers and eliminates sniping an item for a deal....oops, this got long!