Method and system for using line item bid limits in electonic auctions

• US 20020077959A1
• Filed: 05/07/2001
• Published: 06/20/2002
• Est. Priority Date: 02/19/1999
• Status: Abandoned Application

• Current Assignee: Ariba Incorporated (SAP SE)
• Original Assignee: Ariba Incorporated (SAP SE)
• Inventors: Rago, Vincent F., Kinney, Sam E. Jr., Alaia, Marc, Stevens, Robert G., Becker, David J., Rupp, William D., Heckmann, Daniel C., Bernard, Anthony F., Meakem, Glen T., Roberts, Frederick W., Reneau, Jason
• Application Number:
  US09/850,676
• Publication Number:
  US 20020077959A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and system for conducting electronic auctions is described. Lots in the auction are comprised of line items. Line item guidelines determine how adjustments are made to line item bid values when the value of the lot bid is adjusted. The value of a line item bid cannot be adjusted to exceed the line item bid maximum, or go below the line item bid minimum.

Claims

1. A method to control line item price in an electronic auction, comprising:

(a) setting a minimum line item price for a line item in a lot;

(b) receiving a bid adjustment for the lot price;

(c) calculating a corresponding adjustment for the line item price using the lot bid adjustment;

(d) determining if adjusting the line item price by the amount calculated in step (c) will cause the line item price to be lower than the minimum line item price for the line item; and

(e) adjusting the line item price in accordance with said determination.

2. The method of claim 1, wherein the corresponding adjustment for the line item price is calculated on a pro rata basis.

3. The method of claim 1, wherein the corresponding adjustment for the line item price is calculated by maintaining a ratio between the line item price and the lot price.

4. The method of claim 1, wherein the corresponding adjustment for the line item price is calculated by maintaining a ratio between the line item price and the price for another line item in the lot.

5. The method of claim 1, wherein step (a) comprises setting a minimum price for every line item in a lot.

6. The method of claim 5, wherein step (c) comprises calculating corresponding adjustments for each line item price using the lot bid adjustment.

7. The method of claim 6, wherein the corresponding adjustments are calculated on a pro rata basis.

8. The method of claim 6, where in the corresponding adjustments are calculated by maintaining predetermined ratios between line item prices.

9. The method of claim 6, wherein step (d) comprises determining for each line item whether adjusting the line item price by the amount calculated in step (c) will cause the line item price to be lower than the minimum line item price for the line item.

10. The method of claim 1, wherein step (e) comprises adjusting the line item price to the minimum line item price.

11. The method of claim 1, wherein step (e) comprises adjusting the line item price to the price calculated in step (c).

12. The method of claim 1, wherein step (e) comprises making no changes to the line item price.

13. The method of claim 12, additionally comprising notifying the bidder that the lot price bid adjustment has been rejected and the lot price has not been adjusted.

14. The method of claim 1, wherein step (e) comprises using a correcting algorithm to calculate an adjusted line item price if the determination in step (d) determines that adjusting the line item price by the amount calculated in step (c) will cause the line item price to be lower than the minimum line item price for the line item.

15. The method of claim 1, wherein an auction sponsor and a plurality of bidders are coupled electronically over a communications network during the auction.

16. The method of claim 1, wherein the lot is defined at least in part by an auction sponsor.

18. The machine-readable medium of claim 17, wherein the corresponding adjustment for the line item price is calculated on a pro rata basis.

19. The machine-readable medium of claim 17, wherein the corresponding adjustment for the line item price is calculated by maintaining a ratio between the line item price and the lot price.

20. The machine-readable medium of claim 17, wherein the corresponding adjustment for the line item price is calculated by maintaining a ratio between the line item price and the price for another line item in the lot.

21. The machine-readable medium of claim 17, wherein setting a minimum line item price comprises setting a minimum price for every line item in a lot.

22. The machine-readable medium of claim 21, wherein calculating a corresponding adjustment comprises calculating corresponding adjustments for each line item price using the lot bid adjustment.

23. The machine-readable medium of claim 22, wherein the corresponding adjustments are calculated on a pro rata basis.

24. The machine-readable medium of claim 22, where in the corresponding adjustments are calculated by maintaining predetermined ratios between line item prices.

25. The machine-readable medium of claim 22, wherein said determining comprises determining for each line item whether adjusting the line item price by the amount calculated will cause the line item price to be lower than the minimum line item price for the line item.

26. The machine-readable medium of claim 17 wherein said adjusting the line item price comprises adjusting the line item price to the minimum line item price.

27. The machine-readable medium of claim 17, wherein adjusting the line item price comprises adjusting the line item price to the calculated corresponding adjustment price.

28. The machine-readable medium of claim 17 wherein adjusting the line item price comprises making no changes to the line item price.

29. The machine-readable medium of claim 28, additionally comprising notifying the bidder that the lot price bid adjustment has been rejected and the lot price has not been adjusted.

30. The machine-readable medium of claim 17, wherein said adjusting the line item price comprises using a correcting algorithm to calculate an adjusted line item price if the determination determines that adjusting the line item price by the calculated amount will cause the line item price to be lower than the minimum line item price for the line item.

31. The machine-readable medium of claim 17, wherein an auction sponsor and a plurality of bidders are coupled electronically over a communications network during the auction.

32. The machine-readable medium of claim 17, wherein the lot is defined at least in part by an auction sponsor if the determination determines that adjusting the line item price by the calculated amount will cause the line item price to be lower than the minimum line item price for the line item.

17. A machine-readable medium whose contents cause a computer system to control line item price in an electronic auction by:

setting a minimum line item price for a line item in a lot;

receiving a bid adjustment for the lot price;

calculating a corresponding adjustment for the line item price using the lot bid adjustment;

determining if adjusting the line item price by the amount calculated in step (c) will cause the line item price to be lower than the minimum line item price for the line item; and

adjusting the line item price in accordance with said determination.

33. A method to control line item price in an electronic auction, comprising:

(a) setting a maximum line item price for a line item in a lot;

(b) receiving a bid adjustment for the lot price;

(c) calculating a corresponding adjustment for the line item price using the lot bid adjustment;

(d) determining if adjusting the line item price by the amount calculated in step (c) will cause the line item price to exceed the maximum line item price for the line item; and

(e) adjusting the line item price in accordance with said determination.

34. The method of claim 33, wherein the corresponding adjustment for the line item price is calculated on a pro rata basis.

35. The method of claim 33, wherein the corresponding adjustment for the line item price is calculated by maintaining a ratio between the line item price and the lot price.

36. The method of claim 33, wherein the corresponding adjustment for the line item price is calculated by maintaining a ratio between the line item price and the price for another line item in the lot.

37. The method of claim 33, wherein step (a) comprises setting a maximum price for every line item in a lot.

38. The method of claim 37, wherein step (c) comprises calculating corresponding adjustments for each line item price using the lot bid adjustment.

39. The method of claim 38, wherein the corresponding adjustments are calculated on a pro rata basis.

40. The method of claim 38, where in the corresponding adjustments are calculated by maintaining predetermined ratios between line item prices.

41. The method of claim 40, wherein step (d) comprises determining for each line item whether adjusting the line item price by the amount calculated in step (c) will cause the line item price to exceed the maximum line item price for the line item.

42. The method of claim 33, wherein step (e) comprises adjusting the line item price to the maximum line item price.

43. The method of claim 33, wherein step (e) comprises adjusting the line item price to the price calculated in step (c).

44. The method of claim 33, wherein step (e) comprises making no changes to the line item price.

45. The method of claim 44, additionally comprising notifying the bidder that the lot price bid adjustment has been rejected and the lot price has not been adjusted.

46. The method of claim 33, wherein step (e) comprises using a correcting algorithm to calculate an adjusted line item price if the determination in step (d) determines that adjusting the line item price by the amount calculated in step (c) will cause the line item price to exceed the maximum line item price for the line item.

47. The method of claim 33, wherein an auction sponsor and a plurality of bidders are coupled electronically over a communications network during the auction.

48. The method of claim 33, wherein the lot is defined at least in part by an auction sponsor.

50. The machine-readable medium of claim 49, wherein the corresponding adjustment for the line item price is calculated on a pro rata basis.

51. The machine-readable medium of claim 49, wherein the corresponding adjustment for the line item price is calculated by maintaining a ratio between the line item price and the lot price.

52. The machine-readable medium of claim 49, wherein the corresponding adjustment for the line item price is calculated by maintaining a ratio between the line item price and the price for another line item in the lot.

53. The machine-readable medium of claim 49, wherein setting a maximum line item price comprises setting a maximum price for every line item in a lot.

54. The machine-readable medium of claim 53, wherein calculating a corresponding adjustment comprises calculating corresponding adjustments for each line item price using the lot bid adjustment.

55. The machine-readable medium of claim 49, wherein the corresponding adjustments are calculated on a pro rata basis.

56. The machine-readable medium of claim 54, where in the corresponding adjustments are calculated by maintaining predetermined ratios between line item prices.

57. The machine-readable medium of claim 54, wherein said determining comprises determining for each line item whether adjusting the line item price by the amount calculated will cause the line item price to exceed the maximum line item price for the line item.

58. The machine-readable medium of claim 49, wherein said adjusting the line item price comprises adjusting the line item price to the maximum line item price.

59. The machine-readable medium of claim 49, wherein said adjusting the line item price comprises adjusting the line item price to the calculated corresponding adjusted price.

60. The machine-readable medium of claim 49, wherein adjusting the line item price comprises making no changes the line item bid price.

61. The machine-readable medium of claim 60, additionally comprising notifying the bidder that the lot price bid adjustment has been rejected and the lot price has not been adjusted.

62. The machine-readable medium of claim 49, wherein said adjusting the line item price comprises using a correcting algorithm to calculate an adjusted line item price if the determination determines that adjusting the line item price by the calculated amount will cause the line item price to exceed the maximum line item price for the line item.

63. The machine-readable medium of claim 49, wherein an auction sponsor and a plurality of bidders are coupled electronically over a communications network during the auction.

64. The machine-readable medium of claim 49, wherein the lot is defined at least in part by an auction sponsor.

49. A machine-readable medium whose contents cause a computer system to control line item price in an electronic auction by:

setting a maximum line item price for a line item in a lot;

receiving a bid adjustment for the lot price;

calculating a corresponding adjustment for the line item price using the lot bid adjustment;

determining if adjusting the line item price by the amount calculated in step (c) will cause the line item price to exceed the maximum line item price for the line item; and

adjusting the line item price in accordance with said determination.

65. A method of controlling line item price in an electronic auction between a sponsor of the auction and a plurality of bidders, wherein the auction has a plurality of lots for auctioning, comprising:

defining a lot having a first line item, a second line item and a lot price, with each line item having a line item price and a minimum line item price;

receiving a request to modify said lot price; and

modifying each line item price in accordance with said request, such that no line item'"'"'s price is adjusted below its minimum line item price.

66. The method of claim 65, wherein the line item prices are modified on a pro rata basis.

67. The method of claim 65, wherein the line item prices are modified such that a predetermined ratio between line item prices is maintained.

69. The machine-readable medium of claim 68, wherein the line item prices are modified on a pro rata basis.

70. The machine-readable medium of claim 68, wherein the line item prices are modified such that a predetermined ratio between line item prices is maintained.

68. A machine-readable medium having instructions stored thereon which when executed by a processor, cause the processor to:

define a lot in an electronic auction to have a first line item, a second line item and a lot price, with each line item having a line item price and a minimum line item price;

receive a request to modify said lot price; and

modify each line item price in accordance with said request, such that no line item'"'"'s price is adjusted below its minimum line item price.

71. A method to control line item aspects in an electronic auction, comprising:

(a) defining a line item decision rule, said line item decision rule being created to accommodate a pre-auction bidding strategy relating to one or more aspects of a line item portion of a bid for a lot;

(b) receiving information specifying a bid for a lot of products, said bid including a plurality of line item portions for corresponding line items in said lot;

(c) receiving information specifying an adjustment to one or more aspects of said bid for said lot;

(d) analyzing said adjustment to said one or more aspects of said bid for said lot based on said flexible line item decision rule to determine a corresponding adjustment to one or more aspects of one or more line item portions of said bid; and

(e) effecting said corresponding adjustment to said one ore more aspects of said one ore more line item portions of said bid based upon the analysis of step (d).

72. The method of claim 71, wherein said line item decision rule comprises setting a minimum price for a line item.

73. The method of claim 71, wherein said line item decision rule comprises setting a maximum price for a line item.

74. The method of claim 71, wherein said line item decision rule comprises defining a ratio for a line item, such that adjusting the lot price will automatically adjust the line item price in a manner that maintains the ratio.

75. A computer-readable medium for controlling line item aspects in an electronic auction, the medium containing instructions which, when executed by a processor, will cause the processor to:

(a) define a line item decision rule, said line item decision rule being created to accommodate a pre-auction bidding strategy relating to one or more aspects of a line item portion of a bid for a lot;

(b) receive information specifying a bid for a lot of products, said bid including a plurality of line item portions for corresponding line items in said lot;

(c) receive information specifying an adjustment to one or more aspects of said bid for said lot;

(d) analyze said adjustment to said one or more aspects of said bid for said lot based on said flexible line item decision rule to determine a corresponding adjustment to one or more aspects of one or more line item portions of said bid; and

(e) effect said corresponding adjustment to said one ore more aspects of said one or more line item portions of said bid based upon the analysis of (d).

76. The computer-readable medium of claim 75, wherein said line item decision rule comprises setting a minimum price for a line item.

77. The computer-readable medium of claim 75, wherein said line item decision rule comprises setting a maximum price for a line item.

78. The computer-readable medium of claim 75, wherein said line item decision rule comprises defining a ratio for a line item, such that adjusting the lot price will automatically adjust the line item price in a manner that maintains the ratio.

79. A method of controlling line item price in an electronic auction, comprising:

(a) displaying a current bid for a lot to a bidder;

(b) receiving a request for a bid adjustment to the lot from the bidder, wherein the request is to decrease the bid;

(c) displaying an updated bid for the lot, wherein the updated bid is not equivalent to the current bid decreased by the amount of the bid adjustment request received in step (b), but is determined by summing the minimum line item prices for each line item in the lot.

80. A method of controlling line item price in an electronic auction, comprising:

(a) displaying a current bid for a lot to a bidder;

(b) receiving a request for a bid adjustment to the lot from the bidder, wherein the request is to increase the bid;

(c) displaying an updated bid for the lot, wherein the updated bid is not equivalent to the current bid increased by the amount of the bid adjustment request received in step (b), but is determined by summing the maximum line item prices for each line item in the lot.

81. A method of controlling line item price in an electronic auction, comprising:

(a) displaying a current bid for a lot to a bidder;

(b) receiving a request for a bid adjustment to the lot from the bidder, wherein the request is to decrease the bid;

(c) displaying an updated bid for the lot, wherein the updated bid is not equivalent to the current bid decreased by the amount of the bid adjustment request received in step (b), but is determined by summing locked portions of line item prices for each line item in the lot.

82. A method of controlling line item price in an electronic auction, comprising:

(a) displaying a current bid for a lot to a bidder;

(b) receiving a request for a bid adjustment to the lot from the bidder, wherein the request is to increase the bid;

(c) displaying an updated bid for the lot, wherein the updated bid is not equivalent to the current bid increased by the amount of the bid adjustment request received in step (b), but is determined by summing locked portions of line item prices for each line item in the lot.

83. A bidding device operated by a bidder during an auction, said bidding device comprising software that enables the bidder to submit bids to an online auction;

wherein said bidding device displays information about a lot, said information including a bid price for a lot, a bid price for each line item in the lot, and a minimum bid price for at least one line item in the lot;

wherein if said bidder changes said lot bid price, each line item bid price is updated to reflect a proportional change in value, such that no updated line item bid price is adjusted to a value less than its corresponding minimum bid price.