METHOD, SYSTEM AND BUSINESS MODEL FOR A BUYER'S AUCTION WITH NEAR PERFECT INFORMATION USING THE INTERNET

• US 20090292647A1
• Filed: 07/30/2009
• Published: 11/26/2009
• Est. Priority Date: 07/09/1999
• Status: Active Grant

• Current Assignee: Kevin J. Surace, Marc Porat, Paul Milgrom
• Original Assignee: Kevin J. Surace, Marc Porat, Paul Milgrom
• Inventors: PORAT, MARC, Surace, Kevin J., Milgrom, Paul
• Granted Patent: US 7,958,013 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-implemented method of facilitating an electronic auction between a prospective buyer and a plurality of prospective sellers, comprising:

at a computer system comprising at least one server with one or more processors and memory;

receiving into the 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 the 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

,

in response to detecting a buyer-specified event, automatically initiating a software process for communicating information regarding at least some of the seller offers and at least part of the rating information to the buyer.

2. The method of claim 1, wherein the request for an offer is inputted using an electronic template that includes a list of product or service features.

3. The method of claim 1, including communicating information about the buyer to at least one of the sellers.

4. The method of claim 1, wherein the seller offers include the identity of the offerer.

5. The method of claim 1, wherein a time remaining in the specified auction period is communicated to the buyer and at least one of the sellers.

6. The method of claim 1, wherein the adjusted offer expires after a time period specified by the offerer.

7. The method of claim 1, wherein the adjusted offer expires after a time specified by the offerer.

8. The method of claim 1, wherein the communicating of seller offers and rating information to the buyer includes side-by-side comparisons of a plurality of seller offers.

9. The method of claim 1, further comprising communicating an acceptance by the buyer of at least one of the seller offers to at least one of the sellers.

10. A computer system comprising at least one server with one or more processors and memory 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

,

in response to detecting a buyer-specified event, automatically initiating a software process to communicate information regarding at least some of the seller offers and at least part of the rating information to the buyer.

11. The computer system of claim 10, wherein the request for an offer is inputted using an electronic template that includes a list of product or service features.

12. The computer system of claim 10, wherein the computer system is configured to communicate information about the buyer to at least one of the sellers.

13. The computer system of claim 10, wherein the seller offers include the identity of the offerer.

14. The computer system of claim 10, wherein a time remaining in the specified auction period is communicated to the buyer and at least one of the sellers.

15. The computer system of claim 10, wherein the adjusted offer expires after a time period specified by the offerer.

16. The computer system of claim 10, wherein the adjusted offer expires after a time specified by the offerer.

17. The computer system of claim 10, wherein the communicating of seller offers and rating information to the buyer includes side-by-side comparisons of a plurality of seller offers.

18. The computer system of claim 10, wherein the computer system is configured to communicate an acceptance by the buyer of at least one of the seller offers to at least one of the sellers.

19. A computer system comprising at least one server with one or more processors and memory 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.