Quote:
Originally Posted by insidethewrapper
If an item has a reserve price , then that should be where the bidding starts, since the consignor will not take anything less. Seems simple to me. If the reserve is 100K, then the starting price is 100K. If you bid more than this, the highest bidder gets the item. Why secret reserves ?
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Agree... But their objective is to get lots of bidders competing for the item. So it behooves them to start it off low- knowing there’s no risk, given the hidden reserve. They feel that the more people who prospectively “take early ownership” of the item, the better chance of the price being driven up.
Does not make it right... just stating their rationale.