"If the vendor bid wins, the vendor should be made to buy his or her own house and pay the stamp duty. "
Sorry that does not make sense. In order to incur stamp duties a transfer of sale would have to occur from one entity to another.
"It's not play money we are dealing with. An auction is an auction, not some genY I want you to give me more than this number rubbish. "
An auction is just a vehicle to get the best possible price for a vendor under competitive conditions - nothing more nothing less. If you don't like the games then don't play them, by not participating in the auction. I have no problem with vendor bids on the provision they are clearly announced. Perhaps the easiest solution to this issue is all auctions should start at their reserve price - that way there would be no need for dummy bids. The vendor either gets their minimum price or more, or the auction is passed in so that the parties can negotiate after the fact.
