What is a characteristic of a "reserve auction"?

In a reserve auction, a fundamental characteristic is that the seller has the ability to set a minimum price, known as the reserve price. This means the auction will not conclude with the item being sold unless bids meet or exceed this predetermined threshold. This practice protects the seller from selling their item for less than an acceptable amount. It allows sellers to retain control over the minimum outcome of the auction, ensuring that they get at least a specific value for their auctioned items.

The other characteristics referenced do not fit the nature of a reserve auction. For instance, items are not required to be sold at any price, as the presence of a reserve price indicates there is a minimum amount that must be met. Additionally, while bids made in this auction format help in negotiating the final sale, they are not non-revocable nor are all bids necessarily final, as this would typically apply to different auction formats. Lastly, a reserve auction is not limited to just public auctions; it can be conducted in both private and public settings, further defining its flexibility.