Yes, what I think happens is the following: User A's price ceiling is $10, User B's $12. When both reveal their max price early, the item will go to $10.50 ($0.50 increment over A's max price). User A then has plenty of time to notice the item being valued at $10.50 by someone. In many cases users then adjust the value they assign to the item and increase their bid. The result: User B has to pay more than $10.50 they would have paid when sniping the item seconds before auction expiration.