What is the meaning of "bid rigging"?

Bid rigging refers to an illegal practice in which two or more parties collude to manipulate the bidding process, thereby influencing the outcome of an auction. This involves pre-arranging who will win a particular bid, often allowing them to secures items at inflated prices or without true competition. Such agreements can severely undermine the integrity of the auction process and can lead to legal consequences for those involved.

Understanding bid rigging is crucial for maintaining fair market practices, as it disrupts the competitive nature that auctions are supposed to uphold. The other options describe legitimate auction practices or strategies that do not involve collusion or fraudulent behavior, distinguishing them clearly from bid rigging.