What are “no-reserve” auctions?

In a no-reserve auction, items are sold to the highest bidder regardless of price. This type of auction creates an environment where participants may bid on items without the concern that a minimum price must be met before a sale can occur. This encourages competitive bidding and often results in items being sold for prices that might be considered below market value, as bidders are motivated to engage in the auction without fear of an unmet reserve price.

The essence of a no-reserve auction lies in its lack of a minimum required selling price, thereby providing an opportunity for buyers to secure items at potentially lower costs. This contrasts with other types of auctions where items may not be sold if the bids do not reach a predetermined threshold.