What characterizes a "with reserve" auction?

In a "with reserve" auction, the defining characteristic is that the seller has the ability to establish a minimum price for an item being auctioned. This means that the item will not be sold unless the bidding meets or exceeds that predetermined minimum price. This structure protects the seller from selling their item at a price lower than they are willing to accept, ensuring that they have some control over the sale process.

In contrast to this, other types of auctions, such as "without reserve" auctions, do not allow for setting such a minimum price, meaning the item will be sold regardless of the highest bid received. This can create a significant difference in the auction strategy and outcomes for sellers. Additionally, a "with reserve" auction does not require the auctioneer to accept all bids; rather, bids that do not meet the minimum set by the seller may be considered invalid in the context of completing the sale. Thus, the option highlighting the seller's ability to set a minimum price aligns perfectly with the specific nature of "with reserve" auctions.