Buyer's efficiency in auctions
Interesting question,
It can be dealt with with two models: economic theory and game theory (which, in turn, is the base for modern economic theory)

Game theory should be the most practical.
To start if we simplify, we can assume that "everybody else" is one player
In a turn based game, each provides his own minimal bid as long its the highest bid,
That means that the response of each player, will be higher bid, until the maximal value will be reach, for the player with a maximal rate

So the end-game for each player, will the other's maximal bid + delta

Notice that the optimum has to arrive by playing and responding
With an endless amount of players, endless amount of games,
The market price will be the market price: The maximal price will be reached, based on the available supply.
Once that sets, market price is a given known number, based on which a consumer will decide whether to buy or not = economic equilibrium...

So, to answer your question: you can and should play and respond to others' prices, but close enough to market prices (and of course, based on the unique parameters for each flat), simply to save the time and trouble

hope that helps,
Guy

Game theory game tree