Posted By:
davidcyclebackIt resembles shilling. The consignor/auction house is placing bids to get the real bidders to bid higher.
If it isn't shilling because the auction house isn't placing 'real bids,' then it should not appear as if real bids are being placed. eBay also allows reserves, but the difference is the bidder is aware there is a reserve that he clearly has or has not met and, assuming there is no shilling, knows that competing bids are from real buyers.
Duly note that some eBay sellers place shill bids to make it appear as if the lot is a popular item. And I'm sure Sotheby's places these pseudo bids, instead of repeatedly saying "Reserve not met," for similar reason.