Definition: Auction mentality refers to the state of mind that causes bidders to see a greater value in winning an auction than the value of the item itself. Usually the source of this extra value is the satisfaction of winning or the feeling of having triumphed over a competitor.
Auction mentality often leads to bidding frenzies and can cause items to sell for considerably more than they're worth (even at retail) and buyers to pay considerably more than they might have in the absence of a competing bidder.
Though it can be tempting for sellers to try to capitalize on auction mentality by engaging in shill bidding, eBay sellers should avoid this practice at all costs, since it is both illegal usually leads to rapid (and often permanent) suspension from eBay.
