Actually such website does not require autobot to push the price higher.

It's all work on greed. Who wouldn't want to buy items at discounted price. So these people will start bidding without knowing when it's going to end.
On question why people would pay so much and sometimes more than the retail price? They already spent so much on the auction that they felt they lost if they pull out from the auction at that time so they continue bidding although they may be paying higher price in the end.

It's not a scam and I don't think they need autobot to help them. However, it has gambling element in the game itself like how those days people play 'tikam'. It's more on luck and no strategy involved. It's just like playing 4D. You spent money without knowing if you can get anything.

Actually, last time Maxis also has similar auction but using SMS. They charged RM0.30 per sms.

I think it's similar concept.

They don't need to scam to make money. They just need bidders to fight among each other and make more money!