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Bid exchanging? You mean I pay $2,000 for top bid on your site and you pay $2,000 on mine? It's clearly unethical.
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I agree that is definately unethical and I would think that if that was really happening then those directories would "die off" fast anyway. Running a directory is hard work. There are good times and bad times.
I personally have not heard of these types of activities going on, although I can see them happening.
I do know that they bid $1 and I will up it $3 or double your bid etc really bother me. Not when they on on new directories and it is a free dollar, but when it is bigger amounts or on established bid directories.
Lance