[Peter_Spaeth]

Originally Posted by Steve D

Here's my take:

If there had been, say, a $2,000 reserve on the lot, and the highest bidder bid $1,500, everyone would see that the set did not meet the reserve. This could be attributed to either the reserve being set too high, or there just being low interest in the set at that particular time. As it happened, a "shill bid" was placed for $2,000, to match the "unstated" reserve. This led people to believe the set had sold at that price. This is the lie, that the set sold, when it actually did not; and this is where, in my opinion, the main problem lies. It results in false price information being released to the public, and a false value being placed on the item. The set may later exceed the value that was falsely reported at that time, but there is really no way of knowing what effect the false info had, even if there are years between the auction in question, and the actual later sale.

The safest and best way to proceed is to set a reserve (if desired), and let the bidding determine if the reserve is realistic (at that particular moment in time). Then at least, if the item does not sell, the public has accurate information to use, in later placing a value on it.

Steve

The consignor obviously would have preferred a reserve, as it would not have cost him thousands of dollars not to sell his set, as it turned out, but he was told the option was not available. So he took the instruction of what was then still a mostly highly respected auction house as to an alternative. Sure everyone can sit in judgment now. Whatever.