Resale option in auctions leads to higher prices and better deals.
The article discusses how sellers in auctions sometimes choose not to sell even when they receive bids higher than the reserve price. This behavior is explained by the use of resale to signal the true value of the item. The model predicts that prices increase for items that are reauctioned, and that prices rise for both reauctioned items and those sold initially as the delay in reauctioning increases.