Quote:
Originally Posted by edhans
I've never completely bought into the argument that shill bidding affects market values. Obviously if a lot is won by a consignor or someone acting on his behalf, that does artificially inflate the market value (comps) of the card(s) in that lot.
But if the lot is won by a buyer not connected to the auction house or consignor, can we really argue that the value is artificially inflated? Other than the public reporting, how is that transaction different than a buyer negotiating and purchasing the item from a dealer at a show? There is an independent buyer and seller who have agreed to a price. Does that not establish a market price? Why do we need a third party (the underbidder) to establish a market?
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Perhaps I am misunderstanding the point but I don't follow. If but for shill bids I would have won a card for (say) 1000, but because of a shill bid at 1100 I was pushed to 1200, how is that not artificially inflated?