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Backup Bidder Definition
A backup bidder is the bid made just before the winning bidder.  It is sometimes important to know who the backup bidder is in case the winning bidder defaults.  This is especially useful in real estate auctions but is also effective in other type auctions.  Although the  backup bidder is not bound, the auction company can go back to the bidder to see if the bidder is interested if the winning bidder defaults.

Category: Auctions