Quote:
Originally Posted by bandersen
So what's the point of reserves? I see this happen all the time. Why doesn't the seller just set the initial bid at the reserve amount?
|
Because many bidders are not interested in an auction unless there
is a chance of getting the item for a price below the fair market value.
An early Motorola color TV recently sold for nearly $10K on Ebay
(there is a thread on these forums), and the initial bid was set at
$9.99. If the seller had asked for a starting price of $1000 or so,
the item might not have sold or the high bid might have been lower.