Can you bid on your own stuff?

The weirdest thing just happen. I was placing a low bid (opening bid) on a coin on E-bay and someone came back and immediately trumped my bid. I looked at the bid history and it was the seller! Can the seller bid on his own stuff? Is this legal? Doesnt this defeat the no reserve incentive?
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-Amanda
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<< <i>The weirdest thing just happen. I was placing a low bid (opening bid) on a coin on E-bay and someone came back and immediately trumped my bid. I looked at the bid history and it was the seller! Can the seller bid on his own stuff? Is this legal? Doesnt this defeat the no reserve incentive? >>
How do you know it was the seller bidding on his own auction? From what I am aware of, a seller can not use his ID to bid on the same coin the ID has listed.
The name is LEE!