Posted By:
Corey R. ShanusYou say: "I just don't have a quarrel with the format and the practice if everyone knows how the game works."
I say: The reason auction houses continue with the format and the practice is because (i) everyone does not know how the game works, and (ii) many/most know but are not always in a position to determine if the bid is real (e.g., a phone bidder) and to be safe assume it's real. Bottom line is auction houses continue with the practice because they feel sometimes it results in either a higher realized price or the item meeting its reserve. If the auction house felt there was no benefit in continuing the practice, presumably they would stop, resulting in a more efficient auction.