Definition, Meaning & Synonyms

cover-bidding

noun

/ˈkʌvər ˈbɪdɪŋ/

Definition

Cover-bidding is a term used primarily in the context of auctions and bidding processes.

Examples

The auctioneer noticed several instances of cover-bidding during the sale.
To increase your chances of winning, some participants resort to cover-bidding strategies.
Cover-bidding can sometimes lead to overinflated prices at auctions.

Meaning

It refers to a situation where a bidder places a bid that is intended to conceal the true amount they are willing to pay, often to gain an advantage over competitors or to encourage them to increase their bids.