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In cooking, 'reduction' is the process of thickening or intensifying the flavor of a liquid mixture such as a soup, sauce, wine, or juice by evaporation. Common preparations involving reductions include

★ Consommés, reduced and clarified stocks

★ Gravies

★ Gastriques, sauces involving both acidic and sweet components

★ Pan sauces

★ Syrups
While reduction does concentrate the flavors left in the pan, extended cooking can drive away volatile flavor compounds, leaving behind less interesting tastes.
To perform a reduction, boil the liquid (whether stock, wine or sauce mixture) rapidly until the volume desired is reached by evaporation.