According to you, a bidder should always be willing to extend the bid to infinity since each increment is only one cent more.

No, I am willing to pay $0.01 more but not infinity more, there's a difference

"I made my max bid $500.00, but I'd have paid $500.01!"

"I made my max bid $500.01, but I'd have paid $500.02!"

"I made my max bid $500.02, but I'd have paid $500.03!"

…where does this process end?

	▲	pessimizer 2 minutes ago \| parent [-]
		The way you've put it, always exactly 1¢ above your max bid.