Which type of bidding is characterized by a specific minimum increment?

Incremental bidding is defined by the use of specific minimum increases in bid amounts, known as increments. This form of bidding ensures that each new bid must exceed the previous one by a predetermined minimum amount, promoting an organized and strategic auction process. This system allows participants to plan their bidding strategy, as they know exactly how much they need to increase their bid to remain competitive.

In contrast, absolute bidding does not have a minimum bid increment; instead, it may allow bidders to place any amount they choose to outbid others. Reserve bidding involves setting a minimum price that must be met for the auction item to be sold, which does not focus on specific increments. Blind bidding typically occurs without knowledge of rival bids, often lacking defined increments altogether. Incremental bidding stands out as the method that emphasizes structured increases, thus facilitating clarity and efficiency in the auction process.