Shielding (auction)
Under shielding one is Auction tactic understood the following idea is based on:
- If an auction is running, there are a number of interested parties. However, this becomes smaller the higher the apparent sales price of the goods.
- At the internet auction house eBay it is common that the determined selling price is as high as the second highest bid on the item plus an increment of z. B. is € 0.50 ( Vickrey auction ).
- It may well happen that the interested parties outbid each other and thus a "respectable" price for the article is achieved.
- If it were now possible to push the “current” price up enough, the interested parties would lose interest.
- When shielding , proceed as follows:
- Prospect A is bidding on the article.
- Two other, apparently interested parties, B and C, drive up the price by outbidding each other.
- The high price means that all other interested parties lose interest in this auction.
- Interested parties B and C then withdraw their bids.
- This means that the next highest bid is the bid from A, who wins the bid.
The shielding works by shielding the auction from other interests due to the apparently high price. To do this, B and C must cooperate in the interests of A.
It is also sufficient if only a second person bids. Person A offers an item worth € 400 from € 1. B now offers z. B. exaggerated € 600, C then offers € 570. The current bid then climbs to € 580; B is still the highest bidder. If the price is high enough, no third party is interested in the item anymore - it is "shielded". If C withdraws his bid shortly before the end of the auction, the highest bid falls back to one euro. B is now the highest bidder with one euro and wins the bid.
This form of auction and the withdrawal of a bid is not permitted according to § 156 BGB ; an auction that comes about in this way is not binding under civil law .