Do auctions mean higher prices for consumers?
No. Prices for consumer services will be set according to supply and demand in the consumer services marketplace. In a competitive market, if one firm raises its prices, consumers will switch to a competitor. Firms will base their bids upon, among other things, the prices at which they will be able to sell their services to consumers. Auction bids thus depend on consumer prices; consumer prices do not depend on auction bids.
