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Auctions can be held with reserves or absolute. In reserve, there is no certainty that the participant will be able to buy, even with the highest bidding amount but in the case of absolute the property or the item is sold to the highest bidder regardless of the cost of the item. In the most type of reserve auctions, the prospective buyer may not invest their time and money, as there is no certainty even in conditions of being the highest bidder. But in absolute, the sale is guaranteed and participation is heightened.
It is a kind of auction where you can get maximum response from the market place and the bidders will take the auction more seriously and invest time into it.
For each item, the bid starts at $0. In conditions, if only one bidder shows of the auction, the bid would be accepted irrespective of the amount. It is a classic auction where regardless of the cost; the items are sold at the highest bid rate.
It is a kind of direct sale auction found at antique auction sites like foreclosure, eBay.com and that sell rare collectibles or Chinese antiques.
It can be made in situations when businesses want to close down and want to get rid of the merchandise.
There are other types like Dutch auction where the participants are allowed to submit private offers once a high initial price is set.
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