[deftoned]

But doesn't ebay work off a commission based fee? this would mean that auctions could extend and go for much higher prices than if someone bid in the last ten seconds and scored a bargain and ebay would make more money.

The system has it's good sides and bad sides, good is that if someone trys to bid over you in the dying seconds then you have a chance to claim it back, but then they could do the same. It's bad cos you can end up paying tons more than if the auction had ended with your bid in the dying seconds.