Shill bidding is when somebody places a bid on an auction solely to drive up the price of the item, without intending to purchase the item. Typically shill bids are placed by the seller or a confederate of the seller to increase the profit from the auction.
In an effort to combat shill bidding, online auction sites such as Ebay typically disallow anonymous bidding, but it can still happen. To combat shill bidding on a personal level, it helps to make your bid at the last minute (so shill bidders can’t react to your bid) and to never increase your initial bid. (You should always bid the maximum you are willing to pay.)
Posted below is the complete bidding history for a laptop computer which I believe exhibits shill bidding. The shill bidding appeared to use two different accounts (one with zero feedback, and another account that was more established) in an attempt to disguise what was going on. Continue reading
















