What is a "live auction" characterized by?

A live auction is characterized by bidders participating in person, creating an interactive environment where participants can see each other and the items being auctioned. This setup allows for immediate reactions, such as raising paddles to place bids, and fosters a competitive atmosphere that can drive prices up.

In a live auction, the auctioneer typically engages with the audience, encouraging bidding and responding to the energy in the room. The dynamic nature of live bidding contributes to an exciting experience, both for bidders and for the auctioneer, who can gauge interest and enthusiasm directly from the crowd.

The other types of auctions mentioned—like online auctions, where bids are submitted digitally, or telephone bids, where communication occurs over the phone—do not fit the definition of a live auction, as there is no in-person element involved. Additionally, the idea of items being sold without being seen contradicts the principal aspect of a live auction, where bidders have the opportunity to examine items before placing their bids.