QuiBids.com is the largest penny auction website currently operating in the United States. Penny auctions have been around for awhile, but have only recently gotten lots of attention from people outside of the penny auction community. Penny auction websites attract people to them by promising expensive, big ticket items at unbelievably low prices – for example, QuiBids shows a new iPad, which retails at $499 for the most basic model, selling for $22.54. But this winning bid of $22.54 is misleading. This isn’t the truth of how much it costs to win that iPad. The way penny auctions work is...