In an absolute auction, what must the seller agree to?

In an absolute auction, the seller agrees to sell the item to the highest bidder, regardless of the final bid amount. This means there is no minimum price that must be met; the auction concludes with the highest bid, regardless of how low it may be. This type of auction is intended to encourage participation and excitement among bidders, as they know the seller is committed to selling to the highest bidder without any reservations.

This approach can be particularly advantageous for sellers looking to move inventory quickly or create a competitive bidding atmosphere. The absence of a minimum price can also attract more potential bidders, as it eliminates the fear of not meeting a required threshold.

In contrast, other options like setting a minimum price or the seller’s ability to withdraw the item at any time do not apply in an absolute auction, as those stipulations would make the auction less absolute and might lead to less competitive bidding. Additionally, the concept of preventing bidding wars goes against the nature of an auction, which thrives on competitive bidding.