What type of auction allows the seller to accept or reject the highest bid?

A reserve auction is a type of auction in which the seller sets a minimum acceptable price, known as the reserve price. If the bids during the auction do not meet or exceed this reserve price, the seller has the option to accept or reject the highest bid. This means that the seller is protected from having to sell the property for a price lower than their predetermined threshold.

In contrast, an absolute auction requires the property to be sold regardless of bid amount, meaning no minimum price is set; the highest bid wins. A no-reserve auction also operates under similar principles, ensuring that the item is sold to the highest bidder, without a reserve price. An online auction is simply the format in which the auction is conducted, and it can be either reserved or absolute. Therefore, reserve auctions uniquely give sellers the flexibility to evaluate bids against their threshold, making it a distinct choice among auction types.