Posted By:
T206CollectorLet me be clear about a couple of things.
a. I agree that shilling is a no no, criminal or otherwise.
b. I agree that the example of shilling above is shilling.
What I find frustrating about the people who complain about shilling is they typically refuse to acknowledge any responsibility for (a) placing an early bid (what I call "shill inviting") or (b) placing a high and ultimately winning bid.
In economic theory, shilling would reduce the inefficiencies of the market of an auction, whereby you are selling something to someone for an increment over what the second highest bidder was willing to pay, but not the limit of what the first highest bidder was willing to pay. In a perfect market, items would sell for what the highest bidder was willing to pay. That would make the seller and buyer both as happy as possible with a transaction.
It may be illegal, and it may not be right or fair, but from a purely economic standpoint, it makes both parties happy -- you know, when the buyer doesn't know he could've had the item for cheaper.