BROWSE

Absolute Auction

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]
… when the volume of bids becomes large relative to the value of the treasury bills auctioned … that the explanatory power of bid dispersion in the equation predicting high absolute levels of … point to important areas of research related to the performance of the auction process for US …

Ex ante costs of violating absolute priority in bankruptcyEx ante costs of violating absolute priority in bankruptcy
onlinelibrary.wiley.com [PDF]
… when the volume of bids becomes large relative to the value of the treasury bills auctioned … that the explanatory power of bid dispersion in the equation predicting high absolute levels of … point to important areas of research related to the performance of the auction process for US …

Modeling and simulation of a double auction artificial financial marketModeling and simulation of a double auction artificial financial market
www.sciencedirect.com [PDF]
… when the volume of bids becomes large relative to the value of the treasury bills auctioned … that the explanatory power of bid dispersion in the equation predicting high absolute levels of … point to important areas of research related to the performance of the auction process for US …

Risk Averse Buyers' Bidding Price in Emission Permits Auction based on SIPV ModelRisk Averse Buyers' Bidding Price in Emission Permits Auction based on SIPV Model
en.cnki.com.cn [PDF]
… when the volume of bids becomes large relative to the value of the treasury bills auctioned … that the explanatory power of bid dispersion in the equation predicting high absolute levels of … point to important areas of research related to the performance of the auction process for US …

Optimal auction designOptimal auction design
pubsonline.informs.org [PDF]
… when the volume of bids becomes large relative to the value of the treasury bills auctioned … that the explanatory power of bid dispersion in the equation predicting high absolute levels of … point to important areas of research related to the performance of the auction process for US …

Continuous versus intermittent trading on auction marketsContinuous versus intermittent trading on auction markets
www.jstor.org [PDF]
… when the volume of bids becomes large relative to the value of the treasury bills auctioned … that the explanatory power of bid dispersion in the equation predicting high absolute levels of … point to important areas of research related to the performance of the auction process for US …

Calibration of the agent-based continuous double auction stock market by scaling analysisCalibration of the agent-based continuous double auction stock market by scaling analysis
www.sciencedirect.com [PDF]
… when the volume of bids becomes large relative to the value of the treasury bills auctioned … that the explanatory power of bid dispersion in the equation predicting high absolute levels of … point to important areas of research related to the performance of the auction process for US …

Market structure, informational efficiency and liquidity: An experimental comparison of auction and dealer marketsMarket structure, informational efficiency and liquidity: An experimental comparison of auction and dealer markets
www.sciencedirect.com [PDF]
… when the volume of bids becomes large relative to the value of the treasury bills auctioned … that the explanatory power of bid dispersion in the equation predicting high absolute levels of … point to important areas of research related to the performance of the auction process for US …

Adaptive agents in a persistent shout double auctionAdaptive agents in a persistent shout double auction
dl.acm.org [PDF]
… when the volume of bids becomes large relative to the value of the treasury bills auctioned … that the explanatory power of bid dispersion in the equation predicting high absolute levels of … point to important areas of research related to the performance of the auction process for US …

Financial innovations and excesses revisited: The case of auction rate preferred stockFinancial innovations and excesses revisited: The case of auction rate preferred stock
www.jstor.org [PDF]
… when the volume of bids becomes large relative to the value of the treasury bills auctioned … that the explanatory power of bid dispersion in the equation predicting high absolute levels of … point to important areas of research related to the performance of the auction process for US …



Q&A About Absolute Auction


What are some exceptions to this definition?

There are some exceptions to this definition.

What is an auction?

An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder.

How have auctions been used in different contexts?

Auctions have been used in diverse contexts including trade, charity fundraising, political elections, natural resource allocation and even dating.

What does CAPA stand for?

Closed ascending price auction.

Why would you want to use an absolute auction over another type of bidding system?

You may want to use this type of bidding system if you need to sell something immediately.

What does OAPA stand for?

Open ascending price auction.

What is an absolute auction?

An absolute auction is a type of auction where the highest bidder wins.

How does an absolute auction differ from other types of auctions?

In an absolute auction there is no reserve price.