Quote:
Originally Posted by Peter_Spaeth
My instinct is against consignors bidding on their own lots, but on the other hand what is the difference I wonder between a hidden reserve of X on a lot and the consignor placing a bid of X-1 increment? Either way, you can't win the card for less than X, and the consignor gets it back if the bidding doesn't go that high.
Of course in a sense none of these things we are debating matter much. If an auction house wants to, it can ask a friendly third-party to do its bidding, and if a consignor wants to, he can ask a friend.
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I have to agree with all of that. My thought is that it boils down to the principle. One is a static target placed at the outset while the other is a bit more arbitrary in that it can be adjusted as the auction unfolds (at least my understanding is the hidden reserve is not adjusted after an auction has begun). In the end, I'm not sure it matters much because the hammer price can be manipulated in many ways. Discussing principle is one thing, but policing reality is completely another.