This is an auction where the seller sets a price at which participants can choose to buy the item if they wish. If no participants choose the ‘buyout’ option, then the highest bidder wins the item.
Buyout auctions can be temporary or permanent. In temporary buyout auctions, participants cannot choose the buyout price once bidding has commenced. In permanent buyout auctions, participants can choose the buyout price at any time up until the auction finishes. The buyout price may stay the same throughout the auction, or increase in relation to bids placed.