It brings in more timid bidders that may eventually grow to want the item more and wouldnt have bid if the opening bid was too high for them, then there are the people that love to bid but dont intend to win, kinda like gambling and specualting that the chip will fetch much more than the opening bid and they wont win it but had a free fun time being part of the action. Then there is the theory of having three bidders battle it out and drive up the price far more than the item is worth. Reserve does have its use but is missued on smaller items.