Is it true or false that an absolute auction requires a by-bidder to protect the price of the property?

An absolute auction is characterized by the absence of any reserve price, meaning that the property will be sold to the highest bidder no matter how low that bid may be. Because of this structure, there is no requirement for a by-bidder—sometimes referred to as a "guarantor" or "shill bidder"—to protect the price. In an absolute auction, the auctioneer is committed to selling the item regardless of the bids received, which creates a sense of urgency and excitement among potential bidders. This type of auction is designed to ensure that the item is sold, making it clear that all bids, including potentially low ones, are valid without the need for a backup bidder to establish a minimum price. The dynamics of an absolute auction emphasize transparency and competitiveness, encouraging active participation from genuine bidders without the complexities that can arise from protective bidding strategies.