What is ‘Absolute Auction’
A type of auction where the sale is awarded to the highest bidder. Absolute auctions do not have a reserve price which sets a minimum required bid for the item to be sold. One type of absolute auction relates to foreclosed properties, where the winning bid acquires the foreclosed property. This is opposed to a lender confirmation auction, where the lender must approve the bid in order to complete the transaction.
Explaining ‘Absolute Auction’
An absolute auction can occur in various venues including the foreclosure marketplace, the online marketplace (such as eBay.com) or live auction events. In this type of auction, the highest bidder “wins” the item, whether it is real estate property or any other type of product. Absolute auctions are often implemented where there is an immediate demand to sell an item.
Further Reading
- The Canadian treasury bill auction and the term structure of interest rates – www.sciencedirect.com [PDF]
- Ex ante costs of violating absolute priority in bankruptcy – onlinelibrary.wiley.com [PDF]
- Modeling and simulation of a double auction artificial financial market – www.sciencedirect.com [PDF]
- Risk Averse Buyers' Bidding Price in Emission Permits Auction based on SIPV Model – en.cnki.com.cn [PDF]
- Optimal auction design – pubsonline.informs.org [PDF]
- Continuous versus intermittent trading on auction markets – www.jstor.org [PDF]
- Calibration of the agent-based continuous double auction stock market by scaling analysis – www.sciencedirect.com [PDF]
- Market structure, informational efficiency and liquidity: An experimental comparison of auction and dealer markets – www.sciencedirect.com [PDF]
- Adaptive agents in a persistent shout double auction – dl.acm.org [PDF]
- Financial innovations and excesses revisited: The case of auction rate preferred stock – www.jstor.org [PDF]
