Quote:
Originally Posted by Peter_Spaeth
I disagree, strongly. Even two buyers agreeing not to bid against each other is collusion and has a potential impact on price. Are you suggesting that if Ford and GM conspire to fix the price of cars, that isn't illegal because Toyota isn't in on it?
|
Everyone is entitled to their opinion but for me the comparison of Ford and GM has no bearing on this discussion. Ford and GM are not participating in an auction.
In the broad sense of the definition, collusion usually relates to an illegal act (but not always) for a dishonest purpose. I don't see anything wrong with 2 parties that are familiar with each other agreeing to partnership to save themselves money. As I stated, they were not the only potential bidders and there were no guarantees that they would be the high bidders (which is why this certainly isn't bid rigging).
If the 2 parties knew that they were the only bidders, then it certainly would be collusion, bid rigging, etc. But if this was a normal auction/ auction house, there is no way for the partners to know who the other bidders are or what the outcome would be.
Jeff