What's the logic behind hiding the reserve?

[lugerholsterrepair]

Gentlemen, A reserve is simply the minimum price a seller will accept. It is a common practice in all types of auctions.
A hidden reserve serves to force the potential buyer to keep bidding untill he meets the reserve. This MAY be more than he was willing to spend but it is an incentive to find the minimum price.
If a seller discloses the reserve the incentive to keep bidding deminishes. Aution fever is over because the minimum price is known and a more rational decision process grips the buyer.
A reserve then is an incentive tool used by a seller to keep buyers searching and they search by bidding.
Of course..once the reserve is met the seller is assured the auction will bring his minimum but the potential of a higher price is possible because two or more bidders desire the same item and it becomes a true auction. Auction fever reoccours as supply and demand fight it out.
If a seller will not disclose his reserve you can go the unethical route..WAY overbid, discover the reserve and retract your bid as a misplaced decimal. Hey.. I don't do it...I just heard about it.

Jerry Burney