I had an eBay store, which I'm going to reopen soon (after having surgery in April.) I've sold hundreds and hundreds of items and never once had a dishonest buyer. I've bought dozens of items and only been burned once. If I had read the seller's feedback before bidding, I wouldn't have bid. I have 100% positive feedback and read other sellers' feedback very carefully now before buying from them.
I generally start auctions very low for two reasons: one, "Fee"Bay, as sellers call it, charges an insertion fee that is based upon the starting price of the item. If I feel fairly confident that the item is a big seller, I'll put something in at .99 to start to keep my insertion fee low. Also, I can set a reserve price but still attract interested bidders because they don't know what my reserve price is.
Bidding just to run up the price is called "shill bidding" and is not acceptable. If you ever find a seller doing this, they should be reported to eBay immediately.
I always try to give the best customer service I can and be as honest as I can so that I will get repeat customers. It doesn't make sense to rip somebody off for a little bit of money and then lose a customer forever~and scare off future customers when they read negative feedback.
Read the feedback comments, read the feedback comments, read the feedback comments, especially any negatives or neutrals!