[skelseys]

Or auction the H1Bs to employers.

If skilled foreigners accept lower wages because the right to come to the US is worth something to them, then the price of the visa would settle at around the difference in wages. So overseas workers wouldn't undercut US residents. And the perceived monetary value of living in the US would accrue to the government, not to body shops.

[foolinaround]

certain industries might be favored over others in the case of auctions, as they might have more margins, and so, larger purchasing power.

[skelseys]

I mean, that is how money works in general. People or organizations with more of it can outbid those with less of it.