Question about the bidding system

I don’t understand how the bidding system works. Can some one help me out?

People think the axis are at a disadvantage. So the first person will say, “I can play axis with x ipcs.” The other person can eiher let person 1 play axis with an extra x ipcs added either to cash on hand or units on the boad, or they can say, “I can play axis with y ipcs,” where y is a smaller number than x. Eventually, when the one person thinks the axis bid is just right, they let them play that way.

@Yoper:
Actually, that is one way to do it. That is a “bid down” version.
I run a tourney that uses a “bid up” up version.
There is also a secret bid version where the players just write down their bids and then reveal the bids simultaneously.
A bid up would be players bidding to be Allies at higher and higher axis bids, right?

Thanks to everyone for clearing that up.