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Posted By: Corey R. Shanus

The issue is not about offering ironclad protection. That can be done simply by announcing the reserve and starting the bidding at that level. The issue is about a profit-maximizing auction house's perception that book bidding to protect the reserve maximizes profits, both by inducing consignors to consign with them and knowing that however distasteful bidders feel about the practice, they'll still bid. So, yes, you're quite correct that unless and until the practice is outlawed, no auction house will discontinue the practice. But there's your answer, the law should be changed. But I'm not naive enough to believe that is going to happen anytime soon.