Most auctions have a call, ‘going once, going twice, sold to so-and-so for $xxx’. Automated auctions usually have a count down timer visible and audible. Buyers maybe watching several lanes at once, some even watch auctions in several locations with several lanes going at each location at once. Sellers also have Reps watching auctions and approving bids or setting items to RE-run In a later auction. Some are physically present and some are virtual. Some sellers have optimizing programs which will approve or rerun a unit based on many factors, makes it a very efficient process but almost impossible to get a real bargain anymore.
Shill bidders have always been around. Have you ever been to the ‘antique auctions’ in Hot Springs and other places? Some used to be about 50% or more shills. In some auctions it’s known and permitted that the seller can bid on his own stuff. The regular buyers may know when this is happening but they may not.
I have seen buyers from the same company bidding against each other to run up bids on a unit that their company was selling.
Regular on site buyers often compare sales lists and decide if they will bid against each other or not on certain items or arrange private sales after the auction. Online auctions make that more difficult because you can’t control the guy in Timbuktu bidding online.
Auctions should have tapes that can be reviewed in event of disputes which is where we came in. To mediate or arbitrate those disputes.
I’ll stop before getting too specific. Auctions are efficient ways to sell a lot of items quickly, most involve a lot of money and sophisticated buyers and sellers and processes designed to be fair and ethical. There are always those looking for a way to beat the system.
