What are "ascending bids" in auction terminology?

Ascending bids refer to a bidding process where participants place higher offers over a base price in incremental steps. The auctioneer typically starts the bidding at a predetermined minimum price, and participants raise their bids in response to one another. This method continues until no one is willing to offer a higher price, leading to the final sale of the item to the highest bidder.

This approach encourages competition among bidders, as each person aims to exceed the previous bid. The atmosphere can create excitement and drive the final price higher than initial expectations. It is commonly used in live auctions, online auction formats, and various auction settings across many sectors.

The other options do not accurately represent ascending bids. Constant bids imply no change or increase, while decreasing bids describe a different auction strategy where prices drop until an agreement is reached. Anonymous bids pertain to confidentiality, which doesn’t characterize the ascending method specifically. Thus, recognizing ascending bids as those that increase incrementally captures the essence of how this auction strategy operates.