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Posted By: Tom Lawrie

The problem if they are allowed to bid in their own auctions is that no one can be sure that an auction house hasn't bid up individual items to the price level just below the current ceiling. I'm not saying that they do, but they could.

For example, if you bid 300 on an OJ with a 700 ceiling, and you end up winning it for 660, were the bids at 600 legitimate or were they the auction house maximizing their profits?

Personally, I think it is probably much more common for sellers to bid on their own items to maximize their personal take and to make sure that items don't sell for too little. I know Mastro prohibits this practice, but I'm sure a lot of consignors figure out ways around the restrictions. Is this as unethical as an auction house bidding on its own items? Probably not as bad, but still in the gray on the wrong side of the ethically acceptable line.

Just my opinion,
Tom