What screw said ...
The value I place on the smokes I desire is what drives my bidding. If my desire for the smokes is of more value than the amount at bid at the moment, I'm going for the smokes. On the other hand if my wallet is more important to me (ie. wife, my hunger, mortgage pmt, car pmt, Trip to Vegas, etc. ... ad infinitum) then the smokes go to the previous high-bidder, as my values dictate the importance of the bid.
I would be foolish to not factor in the retail price, CI Price, other vendors, what I bid before on the same item, etc. but the bottom line is, "do I want those smokes or don't I"? If "yes," I'll outbid, it's that simple.
Purp