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Posted By: warshawlaw

The issue is not one of the "young-uns" going astray, it is a much older and more established concept called avoiding the appearance of impropriety. We trust the auctioneer not to shill bid us. Just like a judge, an auctioneer has to avoid the appearance that things are not above-board. The problem with in-house consignments is very straightforward and was well articulated in the post: If an auctioneer is selling its own stuff and is running the auction there is no way to verify that shilling is not taking place. Even if the auction is conducted 100% on the level, the potential for improper acts is there and will deter some people from participating. Don't you feel better knowing that an auctioneer prohibits consignors from bidding on their own items? I know I do. This is the same concept.