A "bidding wall," also known as "off-the-wall bidding," is a technique used in auctions where the auctioneer fabricates a bid that didn't originate from a real bidder present.
Understanding Bidding Walls
Bidding walls are essentially artificial bids created by the auctioneer to:
- Increase Perceived Demand: By inventing bids, the auctioneer makes it seem like more people are interested in the item, encouraging actual bidders to raise their offers.
- Raise the Auction Price: The artificially created bids help to push the price higher than it might have gone otherwise.
- Keep the Auction Moving: In slower auctions, it can generate movement and maintain momentum.
Key Aspects of Off-The-Wall Bidding
Here's a breakdown of what constitutes bidding off the wall:
- No Real Bidder: The key element is that the bid is not actually coming from a person present or participating in the auction.
- Auctioneer's Creation: It is a bid invented by the auctioneer solely for the purpose of manipulating the auction dynamics.
- Ethical Concerns: Because it's not a real bid, off-the-wall bidding is often viewed as unethical and deceptive.
Bidding Walls: Pros and Cons
| Aspect | Description |
|---|---|
| Pros | Could potentially increase final selling price, maintain momentum |
| Cons | Considered unethical, deceptive, and potentially illegal, erodes trust in the auction process |
Practical Insights
- Not Always Obvious: It can be difficult to identify when an auctioneer is using this technique.
- Regulated in Some Areas: In many areas, this practice is illegal due to its deceptive nature.
- Impacts Trust: The use of bidding walls damages the integrity and trust of an auction.
In summary, a bidding wall is an unethical practice where auctioneers create artificial bids to inflate prices and create a false sense of demand.
