Posted By:
barrysloateNobody likes it, but at least Sotheby's says they are doing it, so you can choose not to participate.
When you are at a live auction the bidding moves briskly and you typically hear the auctioneer yell: "I have $5000 to the book." That either means somebody left a real bid, or the house is just bidding up to the reserve. And the audience has no way of knowing.
That is why it is imperative for bidders to set limits. Because if you assume that there is a real person who agrees with you about the value of a lot, you might end up seriously overpaying.
On the other hand if you have to have the lot and will pay whatever it takes to get it, you are their model customer.