AUCTION METHODS AND SYSTEMS

• US 20110153449A1
• Filed: 10/29/2010
• Published: 06/23/2011
• Est. Priority Date: 10/29/2009
• Status: Active Grant

• Current Assignee: Orin Hite
• Original Assignee: Orin Hite
• Inventors: Hite, Orin
• Granted Patent: US 8,688,533 B2
• Time in Patent Office: Days
• US Class Current: 705/26.3
• CPC Class Codes: G06Q 30/08 Auctions

Abstract

A novel online auction system in which both sellers and buyers are compelled to bid their “true value”. Potential buyers solicit desired items or services and submit sealed bids. A demand curve is created based on buyer bids, and a potential seller can use the curve to create its own sealed bid. A winning seller is determined, however the system uses the bid of the second-lowest bidding seller to establish the ultimate group of winning buyers and sale price. Winning sellers can choose lower prices to capture higher sale quantities. Second or multiple transactions can be implemented from a single bid, if included in the winning set of bids.

Claims

1. An online auction method, the method comprising the steps of:

effectuating a buyer bidding process;

generating a buyer demand curve;

effectuating a seller bidding process;

determining a winning seller, final sales price for an item, and at least one winning buyer bid based on said final sales price;

introducing to the winning seller a price adjustment option;

adjusting said final sales price if said winning seller chooses to lower said final sales price; and

initiating payment of said final sales price from the at least one winning buyer to said winning seller.

2. The method of claim 1, further comprising at least one additional transaction prior to initiating payment of said final sales price.

3. The method of claim 2, wherein said at least one additional transaction is a donation to charity equal to at least a portion of the difference between said final sales price and a winning buyer'"'"'s initial bid.

4. The method of claim 1, further comprising presenting pricing option data to a seller prior to said seller bidding process.

5. The method of claim 1, wherein said buyer bidding process comprises the steps of:

entering a potential buyer'"'"'s information to gain access to an auction website;

searching said auction website'"'"'s item database to locate a desired item or service;

selecting a specific desired item or service;

inputting a buyer bid for said desired item or service;

submitting said buyer bid to said auction website; and

storing said buyer bid in the buyer bid database of the auction server computer of said auction website.

6. The method of claim 5, further comprising the step of determining whether an additional transaction is desired prior to submitting said buyer bid.

7. The method of claim 5, wherein said buyer bid is sealed and not viewable by other potential buyers or the public.

8. The method of claim 1, wherein the generation of said buyer demand curve comprises the steps of:

collecting at least one buyer bid and storing said at least one buyer bid in a buyer bid database;

generating a product data set based on said at least one buyer bid and buyer information;

generating a buyer demand curve from said product data set;

updating said product data set upon receipt of one or more new buyer bids;

displaying said buyer demand curve for viewing by a potential seller;

updating said buyer demand curve upon receipt of one or more new buyer bids;

generating a set of pricing options for use by said potential seller; and

updating said set of pricing options upon receipt of one or more new buyer bids.

9. The method of claim 1, wherein said product data set is modified to remove applicable sales tax or shipping charges from said buyer bids, prior to said generation of said buyer demand curve.

10. The method of claim 1, wherein said seller bidding process comprises the steps of:

viewing said buyer demand curve generated by an auction website;

inputting a seller bid based on a potential seller'"'"'s analysis of said buyer demand curve;

submitting said seller bid to said auction website; and

storing said seller bid in the seller bid database of the auction server computer of said auction website.

11. The method of claim 1, wherein said buyer bidding process further comprises the step of choosing at least one additional buying parameter, other than price, chosen from the group consisting of:

geographic location of a seller, credentials of a seller, product specifications, and shipping options.

12. A process for implementing an online auction via a computer system, comprising:

transmitting buyer bid data from a buyer'"'"'s computer to an auction server computer;

storing said buyer bid data in memory on said auction server computer;

processing said buyer bid data in the processor of said auction server computer and performing calculations based on said buyer bid data;

transmitting said buyer bid data to a seller'"'"'s computer and displaying a buyer demand curve graphically corresponding to said buyer bid data;

transmitting seller bid data from a seller'"'"'s computer to an auction server computer;

storing said seller bid data in memory on said auction server computer;

processing said seller bid data in the processor of said auction server computer;

performing calculations based on said buyer bid data and seller bid data to produce data representing a winning seller, a winning auction price, and at least one winning buyer;

storing said data representing a winning seller, a winning auction price, and at least one winning buyer on said auction server computer;

transmitting said data representing a winning seller, a winning auction price, and at least one winning buyer to at least one buyer'"'"'s computer and at least one seller'"'"'s computer; and

transmitting data from said auction server computer to a third-party payment site for initiating a payment transaction between a winning seller and at least one winning buyer at a winning auction price.

13. An article of manufacture comprising:

a computer-readable medium having stored thereon a data structure;

a first field containing data representing identifying types of items or services that can be auctioned;

a second field containing data representing customer information;

a third field containing data representing buyer bid information;

a fourth field containing data representing buyer demand curve information;

a fifth field containing data representing seller bid information; and

a sixth field containing data representing the results of an auction, including a winning seller, a winning price, and one or more winning buyers.

14. The article of manufacture of claim 13, further comprising:

a seventh field containing data representing pricing option information; and

an eighth field containing data representing second transaction information.