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Posted By: davidcycleback

When the reserve amount is unknown, some bidders don't bid as it might be a waste of effort. For all these bidders know, the seller might not really be looking to sell or is unrealistic as to value and the hidden reserve is $20 million.

Personally, I will sometimes bid in hidden reserve auctions and have won items in hidden reserve auctions. However, after three or four bids without hitting reserve and not knowing if bids five or six will get even close to the reserve, I will often say 'Forget this'-- where I might have placed bid six or seven in a straight auction.