Dictionary :: Auctions

Glossary of game theory terms.

Reserve Price

A reserve price is the minimum acceptable bid in an auction. If no bidder submits a bid above the reserve price, the auctioneer keeps the item offered for sale. Alternately, in procurement auctions, a reserve price is the maximum acceptable bid. Unlike a minimum bid, a reserve price may or may not be disclosed to the bidders and may change over the course of the auction.

updated: 12 August 2005
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