Which type of auction allows sellers to set reserve prices?

In a reserve auction, sellers have the option to set a reserve price, which is the minimum price they are willing to accept for their item. If bidding does not reach this reserve price, the item will not be sold, giving sellers a level of control over the sale that is not present in other types of auctions. This mechanism protects sellers by ensuring that they do not have to sell their items for less than a predetermined threshold.

While absolute auctions feature no reserve and must be sold to the highest bidder, and sealed bid auctions involve bidders submitting their bids privately without the option for the seller to set a reserve price, the flexibility offered in a reserve auction is key for sellers who want to mitigate their risks. Bid auctions can vary widely, but they do not inherently provide for a reserve price in the same structured manner as a reserve auction.