In auction terminology, what does "absolute auction" specifically refer to?

The term "absolute auction" specifically refers to an auction format where items are sold regardless of the bid amount. In this context, it means that there is no reserve price or minimum threshold that must be met for the item to be sold. This type of auction is notable because it creates a sense of urgency among bidders, often leading to increased participation because buyers are assured that the item will definitely be sold, regardless of the highest bid.

In contrast to an absolute auction, other formats may impose minimum price requirements or allow sellers to withdraw items if the bids do not meet their expectations. Therefore, understanding the nature of an absolute auction reinforces the idea that the seller is committed to selling the item without reservation, ultimately creating a more dynamic and competitive bidding environment.