The mechanism matters more than the number. An escalation clause automatically raises a buyer's offer by a set increment above the next-highest competing offer up to a stated ceiling, and Saskatchewan REALTORS Association standard forms require that increase to be verifiable, not assumed.
Setting the ceiling too low defeats the purpose in a genuinely competitive situation, while setting it too high can commit a buyer to a price they cannot support at financing or appraisal, so the cap should be checked against comparable sales the buyer's own REALTOR® has reviewed, not against how badly they want the house.
The right cap is the highest number a buyer can actually finance and still feel good about, confirmed against real comparables rather than emotion. Get your hand-reviewed valuation from Joel Dyck.