Analysis of current AH's rules regarding shill/internal/sketchy bidding practices

[x2drich2000]

I do believe this is the first time I've seen Mile High have the right to bid in their own auction, but I know HA has had this in their T&C's for years. It seems like every 6 months or so HA name reappears regarding it. On the positive side, at least Mile High marked the lot as a pass, rather than just keeping the final bid "amount" displayed. I'm not sure how anyone could call either either HA or Mile High dishonest for this if it is in their T&C. To me it is quite simple, if you don't like the terms of their sale, don't bid.

On the other end of the spectrum, I know REA and LOTG specifically state employees can't bid and REA even goes so far as to tell you what lots are consigned by employees. I believe both also specifically state when a lot has a reserve.

[ullmandds]

Originally Posted by x2drich2000

I do believe this is the first time I've seen Mile High have the right to bid in their own auction, but I know HA has had this in their T&C's for years. It seems like every 6 months or so HA name reappears regarding it. On the positive side, at least Mile High marked the lot as a pass, rather than just keeping the final bid "amount" displayed. I'm not sure how anyone could call either either HA or Mile High dishonest for this if it is in their T&C. To me it is quite simple, if you don't like the terms of their sale, don't bid.

On the other end of the spectrum, I know REA and LOTG specifically state employees can't bid and REA even goes so far as to tell you what lots are consigned by employees. I believe both also specifically state when a lot has a reserve.

I do not fault any of the auction houses that have such practices as long as they are stated upfront... I just have a problem with the artificial valuations!

[nolemmings]

If Auction houses or their employees are allowed to place bids, it seems reasonable to expect them to disclose when they have done so. At present, we are left to guess. At least by the end of the auction, and preferably beforehand, all bids placed by the house or its staff should be identified as such in the item's bidding history.

[insidethewrapper]

If an item has a reserve price , then that should be where the bidding starts, since the consignor will not take anything less. Seems simple to me. If the reserve is 100K, then the starting price is 100K. If you bid more than this, the highest bidder gets the item. Why secret reserves ?

[perezfan]

Originally Posted by insidethewrapper

If an item has a reserve price , then that should be where the bidding starts, since the consignor will not take anything less. Seems simple to me. If the reserve is 100K, then the starting price is 100K. If you bid more than this, the highest bidder gets the item. Why secret reserves ?

Agree... But their objective is to get lots of bidders competing for the item. So it behooves them to start it off low- knowing there’s no risk, given the hidden reserve. They feel that the more people who prospectively “take early ownership” of the item, the better chance of the price being driven up.

Does not make it right... just stating their rationale.

[x2drich2000]

Originally Posted by perezfan

Does not make it right... just stating their rationale.

I understand what you are trying to say, but honestly, that's just the AH doing what they should be doing, trying to get the most money for the consignor. The more people are bidding, competing, and raising the price, the better the AH is doing for both themselves and the interest of the consignor.

[perezfan]

Yes, and that's exactly what I want as the consignor.

As a bidder, it's a different story!

[aljurgela]

Originally Posted by nolemmings

If Auction houses or their employees are allowed to place bids, it seems reasonable to expect them to disclose when they have done so. At present, we are left to guess. At least by the end of the auction, and preferably beforehand, all bids placed by the house or its staff should be identified as such in the item's bidding history.

+1 (though I think that the REA / LOTG policy is best)

[Peter_Spaeth]

It doesn't seem anyone can identify another AH that bids on and wins lots out of its own auctions.

[calvindog]

You mean besides Mastro?

[Peter_Spaeth]

Originally Posted by calvindog

You mean besides Mastro?

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