Why does WWE use a Reserve Price?
With Reserve Price auctions, WWE starts the auction at a value below the Reserve Price to grab bidder interest even though a Reserve Price is attached. As long as the reserve price is not unreasonable, psychologically speaking, this format can be effective as lower opening amounts do not force the bidder to ante up to fair market value right from the start. And, many sellers also use Reserve Price auctions when they are not sure of the market value of an item, and want to find an audience by enticing multiple bidder interest.
