What does the term "reserve" refer to in an auction context?

In an auction context, the term "reserve" specifically refers to the minimum price that the seller is willing to accept for an item. This price is often not disclosed to bidders, and it serves to protect the seller from selling the item for less than they deem acceptable. If the bidding doesn’t reach this minimum threshold, the item may not be sold at all, even if there are interested bidders. This mechanism allows sellers to maintain a degree of control over the sale of their goods, ensuring that they achieve a price that reflects the item's value or their expectations. Understanding the reserve price is crucial for both buyers and sellers in an auction setting, as it influences bidding strategies and the overall auction dynamics.