What does Bidding conformity mean?

Bidding conformity refers to the phenomenon where bidders in an auction adjust their bids based on the behavior of other participants, often leading to similar bidding strategies or amounts. This can occur in various contexts, such as public procurement or online auctions, where bidders may feel pressure to match or exceed others' bids to remain competitive. As a result, bidding conformity can reduce the overall efficiency of the auction process and potentially lead to inflated prices.