westin said:
It's rampant. You can have another account at work (doing both accounts on one isp will get you caught) or have a friend do the bidding. That's why you just bid your max and leave it at that. Bidding wars are for... you know.
I agree with you - it is rampant and in some cases quite obvious. In the case where you see someone Person A make a bid, then you see Person B bid multiple times (the shill) to boost the price, then Person A or C bids it up again and there goes Person B bid multiple times again to put up the price.
If you're suspicious all you have to do is check Person B's history and see whose auctions they have bid on. If it's the sellers then what you in all likelyhood have is Person B being a shill bidder. There are services (like the Vrane one I posted earlier) who will sort through a users long term bidding history.
In all due respect to the other point you made. In the case of shill bidding then probably a last minute snipe is the best thing you can do. Imagine this scenario:
You see a set of cranks on ebay and you know normally they go for $120 at some online retailer. The bidding starts at $50 and you put in your max bid price of $90 at the onset to get a deal.
Well then Shilly McShill comes along and bumps up your price, making a bid $5 at a time until he gets to $90 and notices that your autobidder did not bump it up to $95. He then realizes that your max bid price is $90 and leaves it at that. If someone comes and outbids you that's great for him. If nobody else cared for the auction and no one else were to bid then at least he's going to get $90 for the cranks in a dishonest way. You would normally of got the cranks for $50 if he didn't shill bid.
Then imagine the same scenario if you sniped the auction. In the last 5 seconds you bid $90 but since nobody else did (or perhaps only a couple of bidders bumped up the cranks a few dollars) so you get it much closer to the $50 the auction started at, not the $90 it was bumped up to dishonestly.
Sometimes you will pay the maximum you would of but you have much less of a chance you would be paying that amount due to a shill.