What does Hockey Stick Bidding Process mean?
A situation in which the price curve of bidding resembles to a hockey stick. The supplier asks for a highly inflated price. This is an unethical practice and is considered anti-competitive and illegal.
Futures Knowledge Explains Hockey Stick Bidding Process
Hockey stick bidding takes place in an imperfect market. There is a shortage of an essential though not an expensive commodity. The demand for the commodity is inelastic and the buyers are ready to pay higher price asked by the seller. Hockey Stick Bidding is however a temporary phenomenon. More suppliers come into the market and offer a more reasonable price.