What might be a consequence of 'bid rigging' in an auction?

Bid rigging is a practice where bidders collude to manipulate the auction process, often leading to predetermined outcomes rather than a fair competition. This manipulation undermines the fundamental principles of auctions, which are intended to foster an open market where bidders can compete fairly for items.

As a result of bid rigging, the auction is compromised, as the final prices for items do not reflect their true value based on legitimate competition. Instead of being determined by genuine bidding activity, the prices may be artificially inflated, negatively impacting both buyers and sellers. This loss of fairness can diminish trust in the auction process, leading to a decrease in participation and overall market integrity.

Other factors, such as transparency and better auction item descriptions, are actually hindered by these unethical practices, as they detract from the competitive environment necessary for a fair auction.