2-Phase auction design and implementation

• US 20090112751A1
• Filed: 10/16/2008
• Published: 04/30/2009
• Est. Priority Date: 10/16/2007
• Status: Abandoned Application

• Current Assignee: CRA International Incorporated
• Original Assignee: CRA International Incorporated
• Inventors: Moldovanu, Benny, Miller, Brad
• Application Number:
  US12/288,029
• Publication Number:
  US 20090112751A1
• 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 system and method for implementing and conducting a 2-phase clock and sealed-bid auction for a multi-part product includes more than one remote computer stations connected to a network, a web server to receive and store bid information and auction parameters. The web server can include application software configured to initiate a clock phase and a sealed-bid phase. The clock phase generally includes presenting bidders with an initial price structure for the multi-part product, receiving bids from each of the bidders, storing the bids, and comparing the bids to a transition rule. The software can initiate the sealed-bid phase based on the comparison between the bids and the transition rule. The seal-bid phase generally includes providing sealed-bid parameters to the bidders, receiving a sealed-bid from the bidders, and determining an auction winner based on a selection rule.

Claims

1. A system for implementing and conducting a 2-phase clock and sealed-bid auction for a multi-part product, comprising:

a plurality of remote computer stations operably connected to a network and configured to receive bids from a plurality of bidders;

a web server component operative to receive and store the bid information from the plurality of remote computer stations, receive and store auction parameters from an auction manager, and including application software configured to initiate a clock phase and a sealed-bid phase, wherein clock phase includes;

presenting the bidders with an initial price structure for the multi-part product;

receiving at least one bid for the multi-part product from each of the bidders within a defined time window;

storing the at least one bid for each of the bidders;

comparing the auction parameters and bids to a transition rule;

performing an end-of-round calculation;

presenting the results of the end-of-round calculation to each of the bidders;

initiating the sealed-bid phase based on the comparison between auction parameters and bids to the transition rule;

wherein, the seal-bid phase includes;

providing sealed-bid parameters to at least a subset of the bidders;

receiving a sealed-bid from at least a subset of the bidders; and

determining auction results based on a selection rule;

wherein the stored auction parameters includes at least the initial price structure, the defined time window, the transition rule, and the selection rule.

2. The system of claim 1 wherein the price structure of the multi-part component and the bids includes a price component and a quantity component.

3. The system of claim 2 wherein the transition rule is calculated by comparing the quantity of each product being auctioned to the quantity of bids for each product.

4. The system of claim 1 wherein the end-of-round calculation includes incorporating a price adjustment for at least one of the parts in the multi-part product.

5. The system of claim 1 wherein the defined time window in the clock phase is approximately between 1 and 60 minutes.

6. The system of claim 1 wherein the selection rule includes at least one rule for each part in the multi-part product.

7. The system of claim 1 wherein the clock phase is an ascending-price clock phase.

8. The system of claim 1 wherein the clock phase is a descending-price clock phase.

9. A computer-readable medium having computer-executable instructions for performing a 2-phase clock and sealed-bid auction for a multi-part product, comprising:

maintaining an auction bidding web site;

storing a plurality of auction parameters from an auction manager including at least an initial price structure, a first and a second defined time windows, a transition rule, and a selection rule;

providing a plurality of bidders with access to the web site;

presenting the bidders with auction rules and the initial price structure;

initiating a clock-phase comprising;

receiving through the web site a first bid for the multi-part product from each of the bidders within the first defined time window;

storing the at least one bid for each of the bidders;

comparing auction parameters and bids to the transition rule to determine if the clock-phase should continue;

performing an end-of-round calculation;

presenting the results of the end-of-round calculation to each of the bidders via the web site;

if the clock-phase continues, then receiving through the web site a second bid for the multi-part product from each of the bidders within the second defined time window;

if the clock-phase will not continue, then initiating a sealed-bid phase wherein, the seal-bid phase includes;

providing sealed-bid parameters to at least a subset of the bidders;

receiving a sealed-bid from at least a subset of the bidders; and

determining the auction results based on the selection rule.

10. The computer-readable medium of claim 9 wherein the clock phase is an ascending-price clock phase.

11. The computer-readable medium of claim 9 wherein the clock phase is a descending-price clock phase.

12. The computer-readable medium of claim 9 wherein the first defined time window is longer in duration than the second defined time window.

13. A method for implementing a 2-phase clock and sealed-bid auction for a multi-part product, comprising:

maintaining a database of auction parameters including at least an initial price structure and a transition rule;

providing a plurality of bidders with access to the a web site, wherein the web site is operably connected to the database;

presenting the bidders with the initial price structure via the web site;

initiating a clock-phase comprising;

receiving through the web site a bid for associated with the multi-part product from each of the bidders;

storing the at least one bid for each of the bidders in the database;

performing an end-of-round calculation;

presenting the results of the end-of-round calculation to each of the bidders via the web site;

initiating a sealed-bid phase based on the auction parameters, the bids received in the clock phase, and the transition rule, wherein the seal-bid phase includes;

providing sealed-bid parameters to at least a subset of the bidders;

receiving a sealed-bid from at least a subset of the bidders; and

determining the auction results.

14. The method of claim 13 wherein the clock phase is an ascending-price clock phase.

15. The method of claim 13 wherein the clock phase is a descending-price clock phase.

16. The method of claim 13 wherein the sealed-bid round does not occur and the auction results are determined based on the auction parameters and the bids received in the clock phase.

17. The method of claim 13 wherein the clock-phase does not occur based on the auction parameters, and the auction results are determined based on the auction parameters and the bids received in the sealed-bid round.

18. The method of claim 13 wherein the price structure of the multi-part component and the bids includes a price component and a quantity component, and the transition rule is calculated by comparing the quantity of each product being auctioned to the quantity of bids for each product.

19. The method of claim 13 wherein the bid information in the clock phase and the sealed-bid phase are received via email.

20. The method of claim 13 wherein the bid information in the clock phase and the sealed-bid phase are received via a facsimile system.