Partnering On Auction Lots

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Posted By: Peter_Spaeth

Bid-rigging is an agreement among buyers not to bid against each other or not to bid above a certain price. If there is an agreement to form a group to bid on and allocate multiple lots, that of course is bid-rigging. Or if there is an agreement to divide a lot of multiple items that otherwise two or more of the group would have bid on against each other, that is also bid-rigging. But forming a group to bid on a lot of multiple items that none of the members would have bid on at all does not implicate either of the harms addressed by bid-rigging, and indeed as Corey said is pro-competitive because through economies of scale it creates another bidder. I would be surprised, and would stand corrected, to see cases holding that such a group -- which I see as more akin to a lawful buyers' cooperative -- is illegal. EDITED TO ADD Granted, of course it might be hard to prove, as a member of the group, that you had no intention of bidding at all but for the group.