Chandelier bids, a.k.a. consignor bidding, buy-in bidding, off-the-wall bidding, consecutive bidding, and rafter bidding...are all names for a shifty way to raise prices at auction. Kinda like...you raise a chandelier.
Check out an auction. The auctioneer is calling out accepted offers, people are calling out offers...lots of yelling, people shuffling around. The auctioneer calls out an accepted bid, looking slightly over the crowd, pretending to answer an offer. It’s difficult for anyone in the crowd to say whom he’s looking at, because everyone just assumes he’s looking at someone behind them. And in the meantime, the auctioneer just nudged the price of the item up a bit with this “bid,” and created the illusion of more interest in the item.
In the past, there have been public policies allowing “bids made on behalf of consigner,” but generally auction participants were not made aware of how that policy was being applied in fake bids during the actual auction.
Oops. That detail must have been left out.
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Finance: What is an Auction Market?13 Views
Finance a la shmoop... what is an auction market.. next up on the block [Man speaking on stage]
we've got stock in the company comb Depot....
okay yeah so the New York
Stock Exchange is an auction market and you have no idea how much caffeine I had [Man holding a monster energy drink]
to have to get that right which means that the prices on the new york stock
exchange happen during a bidding process we're matching offers get you know [People frantically rushing to bid for stocks]
matched... buyers and sellers buy and sell at the
same time so in essence two transactions are happening at once the opposite of
this sort of market is the over the counter or OTC market where dealers are
the ones holding all the cards and they ultimately determine the price by [Dealer with the cards]
creating a spread from where they're willing to sell your shares and what
price they'll pay to buy your shares but in an OTC market well you don't get to [Dogs running side by side]
feel like you're watching the last leg of a greyhound race so you don't get all
my caffeinated auction talk there which is kind of cool we like that, right..right?
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