Hockey Stick Bidding
An anti-competitive bidding practice of a market participant (or trader) offering an extremely high price for a small portion of a good.
The name derives from the price curve of this practice, which resembles a hockey stick. Investopedia Says:
This is considered to be a fraudulent practice of pushing up prices. Market participants submit offers at extremely high prices because they know that the demand for their good is sure to be high.
A good example of this occurred during the California energy crisis of 2001. Energy traders knew that California would need all available power and would be willing to pay any price to get it. Related Terms:
Bid
Commodity
In the Penalty Box
Monopoly
Price Basing
Price Discovery
Stalking Horse Bid |