Friday, March 7, 2014

Shillbidding

Shillbidding is a technique that can be employed by auction systems in order to drive up pricing and/or interest in an item on auction. Shillbidding is done by a shill (also known as a potted plant)?a person that acts toward the benefit of the auctioneers without making it publicly known that s/he has a close relationship with the former?who places phony bids in order to incite a bidding war among auction participants.

Shillbidding tends to occur more in online than traditional auctions as online auction site members are able to create multiple accounts in order to bid on their own items. Many online auction sites such as eBay and Ziinga make use of sophisticated methods to detect collusive activity in order to prevent shillbidding.

Read More

No comments:

Post a Comment