At which type of auction may a seller not place a bid?

At an absolute auction, the property is sold to the highest bidder with no minimum bid or reserve price. This means the seller cannot place a bid themselves, as the goal is to let the auction proceed openly and allow bidders to determine the final price without any interference from the seller. This type of auction generates competitive bidding and encourages bidders to place their highest bids, knowing that the seller cannot influence the outcome.

In contrast, a reserve auction allows the seller to set a minimum price that must be reached before the item is sold, which could involve the seller placing bids to meet that reserve. Silent and online auctions also typically permit sellers to have some level of control or involvement, such as setting starting bids or even selectively engaging in bidding strategies. Thus, absolute auctions are specifically structured to eliminate the seller's ability to bid, ensuring a transparent auction process.