As we have discussed in various posts, there are two types of auctions:
- With reserve
- Without reserve
In a with reserve auction, the seller reserves the right to accept or reject the final highest bid, up until the auctioneer announces, “Sold!” In a without reserve (a.k.a. absolute auction), once the item is put up for bid and a bid is received within a reasonable time, the item must sell to the highest bidder.