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Old 02-20-2008, 07:54 AM
StriperSS StriperSS is offline
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Default Re: Russo and Steele auction

My feeling on this is that shill bidding does not reflect the actual market value of a particular car at a particular time. If the seller sets the reserve of his car at $300,000, and real people in the audience only bid it up to $225,000, this would then indicate that the market has spoken. The seller can take his car back home and wait for more advantageous times, or decide that his car is not as valuable as he thought.
A real person bidding against the house will pay an artificial market value for that car.
Maybe that's an over-simplification, but the more I learn about these auction houses, the more I'm soured on the whole process.
My $.02 anyway.
John
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