There is no problem with reserve price auctions. See below for more clarification
Quote:
* Reserve auction is an auction where the item for sale may not be sold if the final bid is not high enough to satisfy the seller - that is, the seller reserves the right to accept or reject the highest bid. In these cases a set 'reserve' price known to the auctioneer, but not necessarily to the bidders, may have been set in advance below which the item may not be sold. A reserve auction is safer for the seller than a no-reserve auction as they are not required to accept a low bid, but this could potentially result in a lower final price than might otherwise be the case if this means that less interest is generated in the sale.
"Reserve Price" for auctions needs clarification.
Is it kosher or not?
I think the confusion you are referring to is when someone a while back listed a "no-reserve" auction, but it had a "high" minimum starting price (which is the same as "reserve auction" in my mind)
but as Fab says... nothing wrong with reserve auctions.