What type of auction requires the auctioneer to start the bidding?

The correct answer is a reserve auction. In this type of auction, the seller sets a minimum price for the item being sold, known as the reserve price. The auctioneer is responsible for starting the bidding but cannot conclude the auction without meeting or exceeding this predetermined reserve price. If the highest bid does not reach the reserve price, the item may not be sold, allowing the seller to protect their interests and ensure they receive a satisfactory return on their assets.

In contrast, an absolute auction does not have a reserve price, so bidding starts, and the item will be sold regardless of the final bid amount, providing assurance that the item will sell to the highest bidder. Minimum bid auctions typically set a starting point for bidding, but they do not involve the concept of a reserve price that can prevent a sale. Finally, sealed bid auctions involve submitting bids privately without immediate interaction among participants, and there is typically no auctioneer starting bids in this format.