System and method for conducting electronic commerce

• US 20050273417A1
• Filed: 06/04/2004
• Published: 12/08/2005
• Est. Priority Date: 06/04/2004
• Status: Active Grant

• Current Assignee: Oxford University Innovation Limited (University of Oxford)
• Original Assignee: Isis Innovation Limited of Ewert House
• Inventors: Budish, Eric B.
• Granted Patent: US 7,398,229 B2
• 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

An electronic person-to-person double auction-like system that facilitates trade in many differs sorts of item via the World Wide Web or similar such interface. A plurality of sellers can post details of items for sale, including a minimum bid amount and buy price for each. A buyer can create a bid basket comprising bids in respect of a plurality of heterogeneous items available for sale, together with bid-withdrawal rules defining circumstances in which respective bid(s) are to be withdrawn. Bids are binding unless withdrawn. The auction for any item continues until a buyer posts the buy price therefor or the seller accepts a bid posted therefor.

Claims

1. Computer-implemented apparatus for conducting an automated auction in respect of one of a plurality of respective items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers, a database containing information relating to said buyers and sellers and items for sale via an auction, and a processor, wherein said database is communicably coupled to said entry terminals, the apparatus comprising computer software for execution by said processor to conduct said automated auction using said information contained in said database and to facilitate a transaction between a buyer and a seller as a result of said auction, the computer software being arranged and configured to enable:

a. entering by or on behalf of a plurality of sellers, via respective entry terminals, items to be offered for sale in respective auctions, together with a user-defined buy price in respect of each item;

b. posting by or on behalf of a plurality of buyers, via respective entry terminals, bids associated with said respective items, said bids being binding unless withdrawn; and

c) continuing an auction in respect of an item until a buyer posts a bid equal to the buy price thereof, or the seller associated with said item accepts a bid posted by a buyer in respect thereof, or the seller associated with said item withdraws said item from sale.

2. Apparatus according to claim 1, wherein said bids posted by or on behalf of said buyers have associated therewith respective bid-withdrawal rules defining circumstances in which respective bids are to be withdrawn.

3. Apparatus according to claim 2, further arranged and configured to enable posting, by or on behalf of a buyer, bids in respect of a plurality of respective items together with respective bid-withdrawal rules, each bid-withdrawal rule specifying that the associated bid is to be considered to be withdrawn in the event that any one of the other said bids is accepted.

4. Apparatus according to claim 1, arranged and configured to enable a seller to enter a plurality of items to be offered to sale in the form of a bundle, and to enable a buyer to post one or more bids in respect of the whole or selected portions of said bundle.

5. Apparatus according to claim 1, further arranged and configured to enable a buyer to post a bid in respect of an item which includes an offer price and one or more other conditions of said offer price.

6. Apparatus according to claim 1, further arranged and configured to enable buyers to enter, via said entry terminals, items required for procurement.

7. Apparatus according to claim 1, further arranged and configured to enable a seller to enter an item for sale together with a supply-withdrawal rule defining circumstances in which said item is to be withdrawn from sale.

8. Apparatus according to claim 2, wherein said bid-withdrawal rules are user-definable.

9. Apparatus according to claim 2, wherein said bid-withdrawal rules are variable.

10. Apparatus according to claim 1, wherein said buy price in respect of an item is variable by or on behalf of a seller associated therewith during the course of an auction.

11. Apparatus according to claim 1, wherein said bids must be less than or equal to said buy price.

12. Apparatus according to claim 1, further arranged and configured to enable a minimum bid price, less than said buy price, to be defined in respect of an item for sale, wherein allowable bids posted by or on behalf of said buyers must be between said minimum bid price and said buy price inclusive.

13. A computer-implemented method for conducting an automated auction in respect of one of a plurality of respective items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers, a database containing information relating to said buyers and sellers and items for sale via an auction, and a processor, wherein said database is communicably coupled to said entry terminals, the method being for conducting said automated auction using said information contained in said database and for facilitating a transaction between said a buyer and a seller as a result of said auction, and comprising:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, items to be offered for sale in respective auctions, together with a user-defined buy price in respect of each item;

b) posting by or on behalf of one or more of a plurality of buyers, via one or more respective entry terminals, bids associated with respective items, said bids being binding unless withdrawn; and

c) continuing an auction in respect of an item until a buyer posts a bid equal to the buy price thereof, or the seller associated with said item accepts a bid posted by a buyer in respect thereof, or the seller associated with said item withdraws said item from sale.

14. Computer-implemented apparatus for conducting an automated auction in respect of one of a plurality of respective items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers, a database containing information relating to said buyers and sellers and items for sale via an auction, and a processor, wherein said database is communicably coupled to said entry terminals, the apparatus comprising computer software for execution by said processor to conduct said automated auction using said information contained in said database and to facilitate a transaction between a buyer and a seller as a result of said auction, the computer software being arranged and configured to enable:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, items to be offered for sale in respective auctions, together with a user-defined buy price in respect of each item;

b) posting by or on behalf of a plurality of buyers, via respective entry terminals, bids associated with one or more respective items together with bid-withdrawal rules defining circumstances in which respective bids are to be considered withdrawn, said bids being otherwise binding, and wherein said bid-withdrawal rules are user-definable; and

c) continuing an auction in respect of an item until a buyer posts a bid equal to the buy price thereof, or the seller associated with said item accepts a bid posted by a buyer in respect thereof, or the seller associated with said item withdraws said item from sale.

15. Computer-implemented apparatus for conducting an automated auction in respect of one of a plurality of respective items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers, a database containing information relating to said buyers and sellers and items for sale via an auction, and a processor, wherein said database is communicably coupled to said entry terminals, the apparatus comprising computer software for execution by said processor to conduct said automated auction using said information contained in said database and to facilitate a transaction between a buyer and a seller as a result of said auction, the computer software being arranged and configured to enable:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, items to be offered for sale in respective auctions, together with a user-defined buy price in respect of each item; and

b) posting by or on behalf of a single buyer, via a respective entry terminal, a bid basket comprising a plurality of bids associated with a plurality of respective items together with respective bid-withdrawal rules, each bid-withdrawal rule specifying that the associated bid is to be withdrawn in the event that any other bid in said bid basket is accepted, said bids being otherwise binding.

16. Computer-implemented apparatus for conducting an automated auction in respect of one of a plurality of respective items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers, a database containing information relating to said buyers and sellers and items for sale via an auction, and a processor, wherein said database is communicably coupled to said entry terminals, the apparatus comprising computer software for execution by said processor to conduct said automated auction using said information contained in said database and to facilitate a transaction between a buyer and a seller as a result of said auction, the computer software being arranged and configured to enable:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, items to be offered for sale in respective auctions, together with a user-defined buy price in respect of each item, wherein the buy price of an item is variable during the course of a respective auction;

b) posting by or on behalf of a plurality of buyers, via respective entry terminals, bids associated with a respective item together with bid-withdrawal rules defining circumstances in which respective bids are to be considered withdrawn, said bids being otherwise binding; and

c) continuing an auction in respect of an item until a buyer posts a bid equal to the buy price thereof, or the seller associated with said item accepts a bid posted by a buyer in respect thereof, or the seller associated with said item withdraws said item from sale.

17. Computer-implemented apparatus for conducting in respect of a single buyer a plurality of automated auctions in respect of a plurality of respective heterogeneous items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers and a database containing information relating to said buyers and sellers and items for sale, wherein said database is communicably coupled via the Internet to said entry terminals, the apparatus comprising an Internet auction site for conducting said automated auctions using said information contained in said database and to facilitate a transaction between said buyer and one of said sellers as a result of one of said auctions, the Internet auction site being arranged and configured to enable:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, data relating to respective heterogeneous items to be offered for sale; and

b) posting by or on behalf of a single buyer, via an entry terminal, a bid basket comprising bids respectively associated with a plurality of heterogeneous items together with bid-withdrawal rules defining circumstances in which respective bids are to be considered to be withdrawn, said bids being otherwise binding.

18. Apparatus according to claim 17, further arranged and configured to terminate an auction in respect of an item when the seller associated with said item accepts a buyer'"'"'s bid for said item, or when a buyer bids the seller'"'"'s buy price for said item, or when a buyer withdraws a bid for said item.

19. Apparatus according to claim 17, wherein data relating to a heterogeneous item to be offered for sale includes a user-defined buy price in respect of said item.

20. Apparatus according to claim 17, wherein an auction for an item is terminated when said buyer posts a bid equal to the buy price for said item.

21. A method for conducting in respect of a single buyer a plurality of automated auctions in respect of a plurality of respective heterogeneous items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers and a database containing information relating to said buyers and sellers and items for sale, wherein said database is communicably coupled via the Internet to said entry terminals, the method comprising providing an Internet auction site for conducting said automated auctions using said information contained in said database and to facilitate a transaction between a buyer and one of said sellers as a result of one of said auctions, the Internet auction site being arranged and configured to enable:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, data relating to respective heterogeneous items to be offered for sale;

b) posting by or on behalf of a buyer, via an entry terminal, a bid basket comprising bids respectively associated with a plurality of heterogeneous items together with bid-withdrawal rules defining circumstances in which respective bids are to be considered to be withdrawn, said bids being otherwise binding; and

c) terminating all of said auctions when a seller associated with an item accepts said buyer'"'"'s bid for said item.

22. Computer-implemented apparatus for conducting an automated auction in respect of one of a plurality of respective items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers, a database containing information relating to said buyers and sellers and items for sale via an auction, and a processor, wherein said database is communicably coupled to said entry terminals, the apparatus comprising computer software for execution by said processor to conduct said automated auction using said information contained in said database and to facilitate a transaction between a buyer and a seller as a result of said auction, the computer software being arranged and configured to enable:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, items to be offered for sale in respective auctions, together with a user-defined buy price and a supply-withdrawal rule in respect of each item, said supply-withdrawal rules defining circumstances in which respective items are to be considered withdrawn;

b) posting by or on behalf of a plurality of buyers, via respective entry terminals, bids associated with said respective items together with bid-withdrawal rules defining circumstances in which respective bids are to be considered withdrawn, said bids being otherwise binding; and

c) continuing an auction in respect of an item until a buyer posts a bid equal to the buy price thereof, or the seller associated with said item accepts a bid posted by a buyer in respect thereof, or the seller associated with said item withdraws said item from sale.