What is meant by 'absolute auction'?

An absolute auction refers to a specific type of auction where the item being sold is awarded to the highest bidder regardless of the final price achieved. This means there is no minimum price or reserve price set by the seller, so the auction will proceed to completion, and the item must be sold regardless of how low the highest bid may be.

In essence, the defining feature of an absolute auction is the commitment to sell the item without any conditions that might hold back the sale based on the price. This approach can encourage more active bidding, as bidders know that they can potentially acquire an item for a lower amount if there are fewer competitors. Other types of auctions might involve reserve prices or minimum bids, which can limit the potential for competitive bidding.