> However, how does it work if no such answer was created?

I believe no bounty is awarded if the bounty conditions do not match.

> where the bounty was awarded to harrymc whose answer was 1 hour before mine, both have 2 upvotes and **both were posted before the bounty.**

That's not quite correct.

The bounty was started on 20th.
![][1] 

 You posted on [Nov 21, 08:28][2], [harry posted on Nov 21, 07:46][3]. Community chose harry's because he had posted prior to you. Seems fine to me.


  [1]: https://i.sstatic.net/renxu.png
  [2]: https://i.sstatic.net/k3j8Q.png
  [3]: https://i.sstatic.net/CSwLD.png
  [4]: http://superuser.com/posts/211582/timeline?asc=True
  [5]: http://superuser.com/questions/211582?tab=oldest#tab-top