There's a lot of this that I like, but wouldn't the auction just create a single market rate for H1-B employees that's independent of the market rate for the position they're filling? The clause where the employer has to pay the govt the remaining salary if the employee leaves early sounds like it's designed to encourage employers to pay more to discourage that, but I'm not sure what incentive other employers would have to pay more than the H1-B market rate to hire H1-B visa holders who are already here when they could pay the market rate to hire a new visa holder.