Abstract: An interactive auction system allows a Seller to automatically establish the reserve price of an item being sold. The reserve price is established by means of a preliminary auction, in which bidders place standing bids based upon a general description of the quantity and quality of items that may be offered for sale in the future. Sellers can subsequently enter a specific item for sale. The value of the standing bids is then calculated and compared. The highest standing bid is selected and provided the Seller. The Seller then elects whether to accept the highest standing bid or use the highest standing bid as a reserve price for an auction.