What is an absolute auction?

An absolute auction is characterized by items being sold without a reserve price. This means that there is no minimum price that the seller is willing to accept. The auctioneer will sell the item to the highest bidder regardless of the price, which often creates a sense of urgency and excitement among bidders. This type of auction can lead to higher bids from buyers eager to take home the item, knowing that it will be sold to the highest offer made.

In contrast, options describing a high starting price, limited bidders, or online exclusivity do not align with the fundamental definition of an absolute auction. A starting price that is set high may discourage bidding or indicate a reserve price, while restricting bidders goes against the open nature that is typically expected in an auction format. Lastly, while an absolute auction can occur online, it is not restricted to that medium, making that option too narrow to capture the essence of what makes an auction absolute.