Question
What is a reserve price auction?
Answer
If a reserve price is placed on a bidding auction and the reserve is not met when the auction closes, the seller is not obligated to sell the item nor is the buyer obligated to purchase the item, at the high bid price.
The seller may choose to offer the high bidder the opportunity to purchase the item at the high price. However, the bidder is under no obligation to accept the offer.
Related Keywords
reserve, high bidder, reserve not met, auction, auctions