What type of auction is characterized by no reserve price for the items?

An absolute auction is characterized by the absence of a reserve price for the items being sold. In this type of auction, the items are sold to the highest bidder, regardless of the bid amount. This means that there is no minimum threshold that the bids must reach for the sale to be valid. The seller is committed to selling the item no matter the final auction price, which can drive competitive bidding as bidders know that the item will be sold to the highest offer.

This kind of auction can be very appealing for both sellers, who are assured of selling their goods, and buyers, who may get a good deal if bidding is sluggish. It is important to understand that an absolute auction increases the urgency for bidders, as they are aware there is no reserve price to meet, leading to potentially higher final bids.