Posted By:
Max WederDitto on Al's comments. Margins for retailers are squeezed by competitive economic forces, just as commissions charged by auction houses are. Anti-trust laws prevent collusion by sellers and auction houses.
Peter, I'm not sure where you get your basis for your statement, but seller's commissions charged seem to have dropped markedly in recent years for auction houses, as the supply of vintage items becomes more difficult to obtain. I have even heard of a negative commission for a premium item.
In order to maintain profit margins, the auction houses have increased the buyer's premium. As a bidder in an auction, you will only factor in the latter in deciding what you bid. If you don't like the price, don't bid on it. How is that smoke and mirrors?
Max