If an auction is advertised, what type of auction is it considered unless stated otherwise?

An auction that is advertised is generally considered a reserve auction unless the advertisement specifies otherwise. In a reserve auction, the seller sets a minimum price that must be met before the item can be sold. This provides the seller with a level of protection, ensuring that they do not have to sell the item for less than they deem acceptable.

If an auction is advertised but does not explicitly denote that it is an absolute auction, it is assumed that a reserve has been set, as this approach is common practice in the auction industry. An absolute auction, in contrast, would allow the item to be sold regardless of the final bid, which is not the standard assumption in advertising unless stated. Thus, understanding the implications of advertising is crucial for both sellers and bidders in determining the type of auction being conducted.