Method, Sytem and Business Model for a Buyer's Auction with Near Perfect Information Using the Internet

• US 20080133426A1
• Filed: 02/11/2008
• Published: 06/05/2008
• Est. Priority Date: 07/09/1999
• Status: Active Grant

• Current Assignee: Perfect Commerce, LLC (Proactis Holdings Plc)
• Original Assignee: Perfect Commerce, LLC (Proactis Holdings Plc)
• Inventors: Surace, Kevin J., Milgrom, Paul, Porat, Marc
• Granted Patent: US 7,584,124 B2
• Time in Patent Office: Days
• US Class Current: 705/80
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A methodology, system and business model are disclosed for facilitating a fully automated buyer'"'"'s auction in which the major types of transaction costs are significantly reduced by providing the buyer and the sellers with near-perfect information about one another, including information about buyer preferences and competing sellers'"'"' offers. The system implements a buyer'"'"'s auction with multidimensional bidding that minimizes market intelligence, search, bargaining and transaction execution costs and thus creates more competitive, frictionless markets. Buyers and sellers can efficiently conduct the buyer'"'"'s auction within a unified environment, thereby minimizing buyer integration costs as well. The buyer'"'"'s auction generates commercially marketable proprietary information and a revenue stream for the auctioneer providing such a service.

Claims

1. A computer system comprising at least one server for facilitating an electronic auction between a prospective buyer and a plurality of prospective sellers, wherein the computer system is configured to:

receive a buyer'"'"'s request for an offer;

communicate the request for an offer to at least two of the sellers;

receive offers, including terms of sale in response to the request for an offer, from at least two of the sellers;

automatically generate rating information about seller offers based on a plurality of predetermined criteria, wherein the plurality of predetermined criteria include at least one criterion other than price;

communicate information regarding at least some of the seller otters to at least one other seller;

receive an adjusted offer from at least one of the sellers during a specified auction period; and

communicate information regarding at least some of the seller offers and at least part of the rating information to the buyer, wherein a software process initiates the communicating of seller offers and rating information to the buyer when a buyer-specified event occurs, wherein the buyer-specified event is the receipt of a seller offer with a rating above a buyer-specified rating level.

2. A computer-implemented method of facilitating an electronic auction between a prospective buyer and a plurality of prospective sellers, comprising the steps of:

receiving into a computer system a buyer'"'"'s request for an offer;

communicating the request for an offer to at least two of the sellers;

receiving offers, including terms of sale in response to the request for an offer, from at least two of the sellers;

automatically generating rating information about seller offers based on a plurality of predetermined criteria, wherein said plurality of predetermined criteria include at least one criterion other than price;

communicating information regarding at least some of the seller offers to at least one other seller;

receiving an adjusted offer from at least one of the sellers during a specified auction period; and

communicating information regarding at least some of the seller offers and at least part of the rating information to the buyer, wherein a software process initiates the communicating of seller offers and rating information to the buyer when a buyer-specified event occurs.

3. The method of claim 2, wherein said request for an offer is inputted using an electronic template.

4. The method of claim 3, wherein said template includes a list of product or service features.

5. The method of claim 2, wherein said information communicated to the buyer includes information found with a suggestion module.

6. The method of claim 2, wherein the computer system is operated by a service provider unrelated to either the buyer or the sellers.

7. The method of claim 6, wherein the service provider operates via an independent destination on the World Wide Web.

8. The method of claim 6, wherein the service provider is embedded within a third party service.

9. The method of claim 8, wherein the embedded service is operated by the service provider on an out-source basis.

10. The method of claim 8, wherein the embedded service is operated by the third party.

11. The method of claim 2, wherein said request for an offer includes asking the sellers to apply a suggestion module to said request.

12. The method of claim 2, wherein a buyer-created software process initiates the communicating the request for an offer step at specific time periods.

13. The method of claim 2, including communicating information about the buyer to at least one of the sellers.

14. The method of claim 2, wherein said seller offers include the identity of the offerer.

15. The method of claim 2, wherein the time remaining in the specified auction period is communicated to the buyer and at least one of the sellers.

16. The method of claim 2, wherein said adjusted offer expires after a time period specified by the offerer.

17. The method of claim 2, wherein said adjusted offer expires after a time specified by the offerer.

18. The method of claim 2, wherein said communicating of seller offers and rating, information to the buyer includes side-by-side comparisons of a plurality of seller offers.

19. The method of claim 2, further comprising communicating an acceptance by the buyer of at least one of the seller offers to at least one of the sellers.

20. A computer system comprising at least one server for facilitating an electronic auction between a prospective buyer and a plurality of prospective sellers, wherein the computer system is configured to:

receive a buyer'"'"'s request for an offer;

communicate the request for an offer to at least two of the sellers;

receive offers, including terms of sale in response to the request for an offer, from at least two of the sellers;

automatically generate rating information about seller offers based on a plurality of predetermined criteria, wherein the plurality of predetermined criteria include at least one criterion other than price;

communicate information regarding at least some of the seller offers to at least one other seller;

receive an adjusted offer from at least one of the sellers during a specified auction period; and

communicate information regarding at least some of the seller offers and at least part of the rating information to the buyer, wherein a software process initiates the communicating of seller offers and rating information to the buyer when a buyer-specified event occurs.