The bidding increments aren't different, but the price is based on the bid amounts.

 

For example, an item starting at $5 will have 50c bidding increments. Buyer A bids $5.00, then buyer B bids $6.00 - the price will rise to one increment higher than Buyer A's bid, so $5.50.

 

If instead Buyer A bid $5.25, the price would rise to $5.75 when buyer B placed the bid of $6.00.