What is a "shill bid"?

A "shill bid" refers to a bid placed specifically to create the illusion of increased interest in an auction item without any intention of actually purchasing it. This practice is often used to artificially inflate the price of an item, as it misleads genuine bidders into believing that more people are vying for the item than there actually are. The shill bidder often works in collusion with the seller or auctioneer and is usually trying to drive the price higher than it would otherwise go. This practice is considered unethical and may even be illegal in many jurisdictions because it undermines the integrity of the auction process.

Understanding this concept is crucial for auctioneer licensure, as it highlights the importance of fair practices in auctions and the need for regulations to ensure transparency and honesty during the bidding process.