What does an "absolute auction" mean?

An "absolute auction" refers to a type of event where every item is sold to the highest bidder without any reserve price or minimum bid requirement. This means that regardless of the price reached during the bidding process, each item must be sold. The auctioneer has an obligation to sell the items to the highest bidder, which often generates higher participation and excitement among bidders, knowing that they have a fair chance to win the item without the risk of a reserve price holding back the sale.

In contrast, a reserve auction allows items to be withheld from sale unless bidding exceeds a specified minimum, which is not the case in an absolute auction. Options that suggest the ability to retract bids or that indicate only some items may not be sold introduce conditions that do not align with the fundamental concept of an absolute auction. Consequently, the emphasis on selling every item to the highest bidder highlights the defining characteristic of this auction format.