What does it mean when an auction is conducted without reserve?

When an auction is conducted without reserve, it signifies that the items will be sold to the highest bidder without any minimum price or limit imposed by the seller. This means that regardless of how low the final bid may be, the item must still be sold to the winning bidder. The absence of a reserve price ensures that all potential buyers can bid freely, and it often encourages more bidders to participate, as they know that they have a chance of acquiring the item at any price.

In contrast, other types of auction arrangements may involve conditions that create specific limitations or requirements for the sale of the items. For instance, if an auction has a reserve, it allows the seller the right to withdraw the item if the bidding does not meet their expectations. This flexibility for the seller is not present in a no-reserve auction. The understanding of these terms is crucial for auctioneers, sellers, and bidders alike to ensure that everyone is aware of the auction conditions.