What is an auction without a reserve called?

An auction without a reserve is termed an absolute auction. In this format, the property being sold is offered without a minimum price or reserve, meaning that it will be sold to the highest bidder, regardless of the price reached. This type of auction creates an environment where bidders may feel more compelled to bid aggressively, knowing that there is no floor price below which the seller will not sell the item.

The concept of an absolute auction can lead to higher sales prices, as potential buyers may perceive greater competition among bidders. It contrasts with other auction types that might have a minimum bid requirement or reserve price that the seller is unwilling to go below. In an absolute auction, the seller relinquishes control over the final sale price, which can energize the bidding process.

Other auction types listed involve conditions that affect how the sale proceeds, but it is the absolute auction that captures the essence of an unrestricted bidding process.