Maudlin-vickrey auction method and system for maximizing seller revenue and profit
First Claim
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1. A method of optimizing a Vickrey auction transaction to maximize revenue and profit to the seller comprising the steps of:
- calculating a market-derived reserve price from buyers'"'"' bids;
withholding supply based upon said market-derived reserve price;
recording auction parameters;
announcing the auction;
collecting bids in response to said announcing;
sorting collected bids, whereby a set of bids conforming to the recorded auction parameters is defined;
processing bids to determine the selling price, wherein said processing comprises;
calculating a starting revenue by multiplying the highest price bid times the number of items wanted;
calculating a comparative revenue by multiplying the next highest price bid times the number of items wanted by both the highest and next highest bidders;
iteratively performing calculations with each bid in descending price order to determine the revenue realized by the next lowest price times the sum of the items required by the bidder of the next lowest price and all preceding higher bidders;
determining from the calculated revenue figures the optimum selling price and number of units to be sold to realize the maximum revenue; and
selecting winning bids based on the optimum selling price.
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Abstract
A one-sided seller-defined method and system for maximizing a seller'"'"'s profit by withholding supply in Vickery auctions based on a market-derived reserve price calculated from the buyers'"'"' bids in order to maximize revenues and/or profits to the seller(s).
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Citations
25 Claims
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1. A method of optimizing a Vickrey auction transaction to maximize revenue and profit to the seller comprising the steps of:
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calculating a market-derived reserve price from buyers'"'"' bids;
withholding supply based upon said market-derived reserve price;
recording auction parameters;
announcing the auction;
collecting bids in response to said announcing;
sorting collected bids, whereby a set of bids conforming to the recorded auction parameters is defined;
processing bids to determine the selling price, wherein said processing comprises;
calculating a starting revenue by multiplying the highest price bid times the number of items wanted;
calculating a comparative revenue by multiplying the next highest price bid times the number of items wanted by both the highest and next highest bidders;
iteratively performing calculations with each bid in descending price order to determine the revenue realized by the next lowest price times the sum of the items required by the bidder of the next lowest price and all preceding higher bidders;
determining from the calculated revenue figures the optimum selling price and number of units to be sold to realize the maximum revenue; and
selecting winning bids based on the optimum selling price. - View Dependent Claims (4, 5, 6, 7, 8)
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2. (canceled)
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3. (canceled)
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9. A method of providing at least one bid acceptance signal, based on an optimization characteristic, of bids to purchase multiple items that have substantially the same characteristics, the method comprising:
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generating a signal representative of an auction offer of at least some of the multiple items;
receiving a set of signals representative of bids, wherein a set of bid signals is defined and wherein each of the set of bid signals includes a price component and a volume component;
ranking the set of bids, wherein the ranking is dependent on a function of;
(a) the individual price component and (b) a sum of all volume components bid at or above the individual price component;
generating a clearing price signal, wherein the generating is dependent on the optimization characteristic and on the set of ranking parameters; and
generating a set of acceptance signals, wherein each acceptance signal of the set is for a bid having a price component at or above the clearing price, wherein the acceptance signal includes a price component equal to the clearing price and a volume component equal to the volume accepted, and wherein the set of acceptance signals comprises an acceptance signal corresponding to each bid signal having a price component equal or greater than the clearing price. - View Dependent Claims (10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21)
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22. A method of generating a clearing price signal for an auction of multiple items of substantially similar characteristics in which the seller attaches at least some value to the items, the method comprising:
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ranking the set of bids, wherein each of the set of bid signals includes a price component and a volume component, wherein the ranking is dependent on a function of;
(a) the individual price component and (b) a sum of all volume components bid at or above the individual price component;
generating a clearing price signal, wherein the generating is dependent on the optimization characteristic and on the set of ranking parameters; and
generating a set of acceptance signals, wherein each acceptance signal of the set is for a bid having a price component at or above the clearing price, wherein the acceptance signal includes a price component equal to the clearing price and a volume component equal to the volume accepted, and wherein the set of acceptance signals comprises an acceptance signal corresponding to each bid signal having a price component equal or greater than the clearing price. - View Dependent Claims (23, 24, 25)
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Specification