Quote:
Originally Posted by benjulmag
Peter,
That is a recognized practice among most major auction houses, disclosure of which is buried in the fine print of the auction rules. I characterize it as legalized fraud, as its purpose is to induce bids on the mistaken belief there is genuine interest at that bidding level.
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+1. It’s dog shit and, while legal, ethical fraud. I don’t like a hidden reserve, but I get it and think it’s fair enough. But an AH should not be able to effectively shill up the price, making it seem that real bids are being placed, in an effort to get someone to place a real bid at the hidden reserve amount. I despise this practice. Now, just because an AH can do this does not necessarily mean they do it, although I expect they do/would if an item is below the hidden reserve- why not use the tool if you can.