Auction Question/Feedback: Reserve VS. Starting Bid

R

Frost Gate Guardian

W/

Joined Dec 2005

Jan 19, 2006 at 3:18 AM • #1

I don't get why there is a reserve if you can just say a starting bid. It seems like if you have a starting bid, thats the minimum you are selling for.

D

Dralspire

Retired

Joined Apr 2005

Jan 19, 2006 at 4:45 AM • #2

In a nutshell, too high a starting price has a tendency to reduce interest in an item. At the same time, a nicely low initial price could result in a high value item being sold at too low a price. The auctions obviously encourage a healthy competition among potential buyers, and reserve prices help with this by creating interest and also protecting the sellers.

R

Rafe

Frost Gate Guardian

W/

Joined Dec 2005

Jan 19, 2006 at 4:53 AM • #3

Quote: Originally Posted by Dralspire

In a nutshell, too high a starting price has a tendency to reduce interest in an item. At the same time, a nicely low initial price could result in a high value item being sold at too low a price. The auctions obviously encourage a healthy competition among potential buyers, and reserve prices help with this by creating interest and also protecting the sellers.

Oh, I get it. Thanks