System and method for incentivizing participation in a market transaction

• US 10,163,137 B2
• Filed: 11/25/2013
• Issued: 12/25/2018
• Est. Priority Date: 02/05/2003
• Status: Active Grant

• Current Assignee: Hoffberg Family Trust 2
• Original Assignee: Steven Mark Hoffberg
• Inventors: Hoffberg, Steven M.
• Primary Examiner(s): Van Bramer, John
• Application Number:
  US14/089,022
• Publication Number:
  US 20140081793A1
• Time in Patent Office: 1,856 Days
• Field of Search: 705 1471, 705 263
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates
• CPC Class Codes: G06Q 30/0282 Rating or review of business operators or products
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G07F 17/32 for games, toys, sports, or amusements
• CPC Class Codes: G07F 17/323 wherein the player is informed, e.g. advertisements, odds, instructions
• CPC Class Codes: G07F 17/3237 about the players, e.g. profiling, responsible gaming, strategy/behavior of players, location of players

Abstract

A system and method providing for communication and resolution of utility functions between participants, wherein the utility function is evaluated based on local information at the recipient to determine a cost value thereof. A user interface having express representation of both information elements, and associated reliability of the information. An automated system for optimally conveying information based on relevance and reliability.

Claims

1. An auction method for defining an allocation of at least one resource of an automated system, comprising:

defining an incentive for plurality of auction participants to compete in an auction, the incentive being dependent at least one bid within the auction prior to determination of an auction result, and being subject to at least one auction rule;

conducting the auction, comprising receiving a plurality of automated communications through an automated communication network, from the plurality of auction participants, to automatically determine the auction result representing an allocation of the at least one resource of the automated system involving a prevailing auction participant and defining at least one non-prevailing auction participant;

automatically determining the incentive by an automated computing device based on the plurality of automated communications defining the at least one bid, and the at least one auction rule;

communicating an automated incentive communication through the automated communication network, to convey the incentive to the at least one non-prevailing auction participant; and

selectively allocating the at least one resource within the automated system in dependence on the auction result, wherein the at least one resource thereby has diminished availability for alternate allocations.

2. The method according to claim 1, further comprising automatically conducting a transaction between at least two parties distinct from the prevailing auction participant, selectively dependent on information supplied through the automated communication network according to the auction result.

3. The method according to claim 1, wherein:

the auction is conducted to automatically supply information by the prevailing auction participant for operation of the automated system, each of the plurality of auction participants interacting with the automated communication network using digital communications through a respective automated communication device; and

the incentive comprises a unit of a virtual currency automatically generated within the automated system;

further comprising automatically conducting a transaction comprising a payment transaction employing the automatically generated virtual currency generated within the automated system, selectively dependent on information supplied through the automated communication network according to the auction result.

4. The method according to claim 1, wherein an amount of the incentive is a variable payment automatically and competitively determined according to the at least one bid and the at least one auction rule.

5. The method according to claim 1, wherein the auction is implemented under decentralized control.

6. The method according to claim 1, wherein the incentive is conveyed to the at least one non-prevailing auction participant by the automated incentive communication communicated through the automated communication network as an electronic transfer of an amount of a virtual currency.

7. An apparatus for conducting a an auction for defining an allocation of at least one resource of an automated system, comprising:

a memory configured to store at least one auction rule for determining an incentive for at least one auction participant to compete against other auction participants in the auction, the incentive being dependent on at least one bid prior to determination an auction result;

an interface port to an automated communication network;

at least one automated processor, configured to;

conduct the auction, by communication of a plurality of automated communications through the automated communication network, from a plurality of auction participants, to determine the auction result representing an allocation of the at least one resource of the automated system involving a prevailing auction participant;

automatically determine the incentive based on the plurality of automated communications defining the at least one bid, and the at least one auction rule; and

communicate an automated incentive communication through the automated communication network, to convey the incentive to at least one non-prevailing auction participant; and

the automated system, configured to selectively allocate the at least one resource in dependence on the auction result, such that the selectively allocated at least one resource has diminished availability for alternate allocations.

8. The apparatus according to claim 7, wherein the incentive comprises an amount of a virtual currency generated within the automated system.

9. The apparatus according to claim 7, wherein the auction rule defines the incentive based on at least a relationship between a prevailing bid from a prevailing auction participant and a non-prevailing bid from a non-prevailing auction participant.

10. The apparatus according to claim 7, wherein the auction participants compete in the auction to supply information required for operation of the automated system;

wherein the at least one automated processor is further configured to;

automatically receive the information for operation of the automated system from the prevailing auction participant; and

automatically operate the automated system selectively dependent on the received information.

11. The apparatus according to claim 7, wherein:

the at least one automated processor is further configured to automatically conduct a transaction between at least two parties, selectively dependent on information supplied through the automated communication network according to the auction result;

the transaction comprises a transfer of a first amount of a virtual currency generated within the automated system; and

the incentive comprises a transfer of a second amount of the virtual currency generated within the automated system.

12. The apparatus according to claim 7, wherein an amount of the incentive is a variable payment automatically and competitively determined by the at least one automated processor according to the at least one bid and the at least one auction rule.

13. The apparatus according to claim 7, wherein the at least one automated processor of the apparatus is further configured to communicate with a plurality of other apparatuses, each having a corresponding memory, interface port to the automated communication network;

and at least one automated processor, to implement the auction under decentralized control.

14. The apparatus according to claim 7, wherein the at least one automated processor comprises a plurality of decentralized processors, and the auction is implemented according to a decentralized control algorithm on the plurality of decentralized processors.

15. The apparatus according to claim 8, wherein the at least one automated processor is further configured to account for impairments of the automated communication network in the conduct of the auction.

16. An auction method for defining an allocation of at least one resource of an automated system, comprising:

defining at least one auction rule for determining an incentive for at least one auction participant to compete against other auction participants in an auction, the incentive being dependent on states of the auction prior to a determination of an auction result;

conducting the auction, comprising receiving a plurality of automated communications through an automated communication network, from a plurality of auction participants, to automatically determine the auction result representing an allocation involving a prevailing auction participant of the at least one resource of the automated system;

automatically determining the incentive by an automated computing device based on the plurality of automated communications defining the states of the auction prior to the determination of the auction result, and the at least one auction rule;

communicating an automated incentive communication through the automated communication network, to convey the incentive to at least one non-prevailing auction participant; and

controlling the automated system to selectively allocate the at least one resource of the automated system, based on the auction result, to thereby diminish availability of the at least one resource for alternate allocations.

17. The method according to claim 16, wherein an amount of the incentive is a variable payment automatically determined according to the states of the auction prior to the determination of the auction result and the at least one auction rule.

18. An auction-controlled automated system, comprising:

at least one memory configured to store at least one auction rule for determining an incentive for at least one auction participant to compete against other auction participants in an auction, the incentive being dependent on states of the auction prior to a determination of an auction result;

an interface to an automated communication network;

at least one automated processor, configured to;

conduct the auction, based on at least a plurality of automated communications received through the automated communication network, from a plurality of auction participants, and determine the auction result representing an allocation involving a prevailing auction participant of at least one resource of the automated system;

determine the incentive by based on the plurality of automated communications defining the states of the auction prior to the completion of the auction, and the at least one auction rule; and

communicate an automated incentive communication through the automated communication network, to convey the incentive to at least one non-prevailing auction participant; and

the automated system, comprising the at least one resource which is selectively allocated in dependence on the auction result, and has a resulting diminution of availability for alternate allocations.

19. The auction controlled automated system according to claim 18, wherein the at least one automated processor is further configured to determine an amount of the incentive as a variable payment determined according to the states of the auction prior to the determination of the auction result and the at least one auction rule.

20. A method for controlling a system, comprising:

defining a rule to determine an incentive for participants, contingent on competition against other participants during conduct of an auction;

conducting the auction, based on a plurality of communications received through an automated communication network, from the plurality auction participants, to automatically determine an auction result;

automatically determining the incentive based on the defined rule and the plurality of communications;

automatically communicating the determined incentive to at least one non-prevailing participant; and

controlling the automated system dependent on the auction result, to selectively allocate a limited resource on behalf of the prevailing participant.