[Archive]

Posted By: Richard Masson

If Sotheby's auction procedures upset you, then you should see what goes on at thoroughbred racehorse auctions. The consignor can set a low reserve and then sit in the audience and bid, or set a higher reserve and have multiple parties make bids up to the reserve to give the appearance of a spirited auction. Everyone knows the game is played that way. The risk the consignor needs to be aware of is the risk of not selling if he gets stuck with the high bid.

The point of an auction is not to guarantee a fair price to the buyer, it is to get items sold at a price acceptable to both the buyer and the seller.

As far as Sotheby's goes, if you can't see the bid in the room, assume it is the house bidding to a reserve.