ok Lawyers- Is shill bidding illegal?

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Posted By: T206Collector

...perspective -- and, if you have an open mind, putting aside the stated revulsion at the concept of shill bidding for a moment -- I could make a pretty compelling argument that an item that sells with shilling, when done optimally, would actually more accurately reflect the true value of the market for that card.

The way a clean auction works, the winner pays only an increment above the next higher bidder, regardless of what he was willing to ultimately pay. Thus, you have a sale where the seller is not getting the value that is truly available in the market place. If a seller shills up to any point between the second highest legitimate bidder and the winning bid, the card is sold for what is actually closer to the available market value. That is good for the seller (obviously), the buyer would not knowingly be any worse off, and the market reflects the price point of the card more clearly.

Of course, if people understanding or even suspect that shill bidding is going on, most would be less likely to bid in those auctions, and thus the market would not be able to reflect true market value -- since so many bidders would stay home. But if it was done without any suspicion from buyers, and it was never disclosed, it would actually provide a more accurate reflection of the current market for a card.







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