Which term is often used interchangeably with absolute auction?

The term that is often used interchangeably with absolute auction is a no-reserve auction. In an absolute auction, the property is sold to the highest bidder without any minimum bid or reserve price set by the seller. This means that the auction will proceed regardless of the final bid amount, ensuring that the property will be sold to the highest bidder, regardless of how low the bid may be.

The concept of a no-reserve auction directly correlates to this definition, as it signifies that there are no hidden conditions to the sale; the bidder who offers the highest amount will win the item, thus mimicking the nature of an absolute auction. This is a crucial aspect for bidders to understand, as it influences both the strategy they should use while bidding and their expectations regarding the sale outcome.

The other terms listed—incremental auction, traditional auction, and market-value auction—do not accurately reflect the specific concept of an absolute auction. Incremental auctions involve increasing bids, while traditional auctions can include various structures including those with reserves. Market-value auctions may assume a certain value is expected, which contrasts with the open and unconditional nature of absolute auctions.