Bargaining System to Induce Truthful Revelation of Reservation Prices

• US 20130232031A1
• Filed: 02/12/2013
• Published: 09/05/2013
• Est. Priority Date: 02/13/2012
• Status: Abandoned Application

• Current Assignee: New York University
• Original Assignee: New York University
• Inventors: Brams, Steven J., Kaplan, Todd R., Kilgour, D. Marc
• Application Number:
  US13/765,603
• Publication Number:
  US 20130232031A1
• Time in Patent Office: Days
• US Class Current: 705/26.35
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G06Q 30/0613 Third-party assisted

Abstract

Systems and methods for facilitating agreement between a first party and a second party. Each party may provide a reservation price and an offer price. Overlap between the information provided by the parties is utilized to determine a settlement price.

Claims

1. A non-transitory computer-readable medium having instructions stored thereon for facilitating agreement between a first party and a second party, with the instruction when executed by a hardware processor performing the following:

receiving a first reservation price from a first party interface and a second reservation price from a second party interface;

determining if there is a reservation price overlap interval between the first reservation price and the second reservation price;

if there is no reservation price overlap interval, then providing a no-settlement indication to the first party interface and the second party interface to indicate that there is no settlement;

if there is reservation price overlap interval, then;

receiving a first offer from the first party interface and a second offer from the second party interface;

determining if the first offer price is within the reservation price overlap interval;

determining if the second offer price is within the reservation price overlap interval;

where at least one of the first offer price and second offer price is within the reservation price overlap interval, providing a settlement value indication, wherein;

if the first offer and second offer both fall in the overlap interval, then the settlement value indication is the average of the first offer and second offer to the first party interface and the second party interface indicating;

if the first offer is in the overlap interval and the second offer is not, then the settlement value indication is equal to the first offer with a predetermined probability to the first party interface and the second party interface;

if the second offer is in the overlap interval and the first offer is not, then the settlement value indication is equal to the second offer with a predetermined probability;

and

if both the first offer and the second offer fall outside the overlap interval, then providing the no-settlement indication.

2. The system of claim 1, wherein the predetermined probability is ½

.

3. The non-transitory computer-readable medium of claim 1, wherein the predetermined probability is 1.

4. The non-transitory computer-readable medium of claim 1 wherein, if there is an overlap interval, then this is transmitted to at least one of the first party interface and the second party interface.

5. The non-transitory computer-readable medium of claim 1, wherein the hardware processor performs the following step:

transmitting an invitation from one of the first party interface and the second party interface to the other of the first party interface and the second party interface to participate in bargaining.

6. The non-transitory computer-readable medium of claim 8 wherein, if an invited party declines to participate in the bargaining, then transmitting to the corresponding first party interface or second party interface documentation of the reservation price submitted and declination to participate.

7. The non-transitory computer-readable medium of claim 1 wherein:

if a no settlement indication is provided, then requesting a first party offer and a second party offer until at least one of a new first party offer and a new second party offer falls inside the overlap interface;

providing an settlement value indication;

if only one of the first party offer and the second party offer are within the overlap interval, equal to the offer within the overlap interval; and

if both the first party offer and the second party offer are within the overlap interval, equal to the average of the first party offer and the second party offer.

8. The non-transitory computer-readable medium of claim 1 wherein, if both the first offer and the second offer fall outside the overlap interval, then transmitting to the first party interface and the second party interface an indication of such.

9. The non-transitory computer-readable medium of claim 1 wherein, if one party'"'"'s offer is inside the overlap interval, and one party'"'"'s offer is outside of the overlap interval, then at least one of the parties is notified of such.

10. A non-transitory computer-readable medium having instructions stored thereon for facilitating agreement between a first party and a second party, with the instruction when executed by a hardware processor performing the following:

receiving a first-offer price from a first party interface and a second-offer price from a second party interface;

determining if the second-offer price is greater than or equal to the first-offer price, in which case a settlement-value indication is provided equal to the average of the first-offer price and the second-offer price;

otherwise, receiving a first reservation price from the first party interface and a second reservation price from the second party interface;

determining if there is an overlap interval between the first reservation price and the second reservation price;

if there is no overlap interval, then providing a no settlement indication to the first user interface and the second user interface;

otherwise,

if the first offer and second offer both fall inside the overlap interval, then providing to the first user interface and the second user interface a settlement value that is the average of the first offer and second offer;

otherwise,

if the first offer is in the overlap interval and the second offer is not, then providing to the first user interface and the second user interface a settlement value that is the equal to the first offer with a predetermined probability;

otherwise,

if the second offer is in the overlap interval and the first offer is not, then providing to the first user interface and the second user interface a settlement value that is the equal to the second offer with a predetermined probability;

otherwise,

if both the first offer and the second offer fall outside the overlap interval, providing the no-settlement indication to the first user interface and the second user interface.

11. The non-transitory computer-readable medium of claim 10, wherein the predetermined probability is ½

.

12. The non-transitory computer-readable medium of claim 10, wherein the predetermined probability is 1.

13. The non-transitory computer-readable medium of claim 10 wherein, if there is an overlap interval, then this is transmitted to at least one of the first party interface and the second party interface.

14. The non-transitory computer-readable medium of claim 10, wherein the hardware processor performs the following step:

transmitting an invitation from one of the first party interface and the second party interface to the other of the first party interface and the second party interface to participate in bargaining.

15. The non-transitory computer-readable medium of claim 14 wherein, if an invited party declines to participate in the bargaining, then transmitting to the corresponding first party interface or second party interface documentation of the reservation price submitted and declination to participate.

16. The non-transitory computer-readable medium of claim 10 wherein if a no settlement indication is provided, then requesting a first party offer and a second party offer until at least one of a new first party offer and a new second party offer falls inside the overlap interface;

providing an settlement value indication;

if only one of the first party offer and the second party offer are within the overlap interval, equal to the offer within the overlap interval; and

if both the first party offer and the second party offer are within the overlap interval, equal to the average of the first party offer and the second party offer.

17. The non-transitory computer-readable medium of claim 10 wherein, if both the first offer and the second offer fall outside the overlap interval, then transmitting to the first party interface and the second party interface an indication of such.

18. The non-transitory computer-readable medium of claim 10 wherein, if one party'"'"'s offer is inside the overlap interval, and one party'"'"'s offer is outside of the overlap interval, then at least one of the parties is notified of such.

19. The non-transitory computer-readable medium of claim 10, further comprising the hardware processor performing the following steps:

wherein the first-offer price and the first reservation price from the first party interface, the second offer price and the second reservation price from the second party interface are received prior to the determining if the second offer price is greater than or equal to the first offer price and the determining if there is the overlap interval.

20. A computer-implemented machine for facilitating agreement between a first party and a second party, comprising:

a processor; and

a tangible computer-readable medium operatively connected to the processor and including computer code configured to;

receive a first reservation price from the first party and a second reservation price from the second party;

determine if there is an overlap interval between the first reservation price and the second reservation price;

if there is no overlap interval, then indicate that there is no settlement;

otherwise,

if the first offer and second offer both fall in the overlap interval, then indicate a settlement value which is the average of the first offer and second offer;

otherwise,

if the first offer is in the overlap interval and the second offer is not, then indicate a settlement value equal to the first offer with a predetermined probability;

otherwise,

if the second offer is in the overlap interval and the first offer is not, then indicate a settlement value equal to the second offer with a predetermined probability;

otherwise,

if both the first offer and the second offer fall outside the overlap interval, then indicate no settlement.

21. A computer-implemented machine for facilitating agreement between a first party and a second party, comprising:

a processor; and

a tangible computer-readable medium operatively connected to the processor and including computer code configured to;

(1) receiving a first-offer price from a first party and a second-offer price from a second party;

(2) determining if the second-offer price is greater than or equal to the first-offer price, in which case the system indicates a settlement value equal to the average of the first-offer price and the second-offer price;

otherwise, the system receives a first reservation price from the first party and a second reservation price from the second party;

(3) determining if there is an overlap interval between the first reservation price and the second reservation price;

(4) if there is no overlap interval, then indicating that there is no settlement;

otherwise,

(5) if the first offer and second offer both fall inside the overlap interval, then indicating a settlement value which is the average of the first offer and second offer;

otherwise,

(6) if the first offer is in the overlap interval and the second offer is not, then indicating a settlement value equal to the first offer with a predetermined probability;

otherwise,

(7) if the second offer is in the overlap interval and the first offer is not, then indicating a settlement value equal to the second offer with a predetermined probability;

otherwise,

(8) if both the first offer and the second offer fall outside the overlap interval, then indicating no settlement.

22. A method implemented on a hardware processor configured to perform the steps of:

receiving a first reservation price from the first party and a second reservation price from the second party;

determining if there is an overlap interval between the first reservation price and the second reservation price;

if there is no overlap interval, then indicating that there is no settlement;

otherwise,

if the first offer and second offer both fall in the overlap interval, then indicating a settlement value which is the average of the first offer and second offer;

otherwise,

if the first offer is in the overlap interval and the second offer is not, then indicating a settlement value equal to the first offer with a predetermined probability;

otherwise,

if the second offer is in the overlap interval and the first offer is not, then indicating a settlement value equal to the second offer with a predetermined probability;

otherwise,

if both the first offer and the second offer fall outside the overlap interval, then indicating no settlement.

23. A method implemented on a hardware processor configure to perform the steps of:

receiving a first-offer price from a first party and a second-offer price from a second party;

determining if the second-offer price is greater than or equal to the first-offer price, in which case the system indicates a settlement value equal to the average of the first-offer price and the second-offer price;

otherwise, the system receives a first reservation price from the first party and a second reservation price from the second party;

determining if there is an overlap interval between the first reservation price and the second reservation price;

if there is no overlap interval, then indicating that there is no settlement;

otherwise,

if the first offer and second offer both fall inside the overlap interval, then indicating a settlement value which is the average of the first offer and second offer;

otherwise,

if the first offer is in the overlap interval and the second offer is not, then indicating a settlement value equal to the first offer with a predetermined probability;

otherwise,

if the second offer is in the overlap interval and the first offer is not, then indicating a settlement value equal to the second offer with a predetermined probability;

otherwise,

if both the first offer and the second offer fall outside the overlap interval, then indicating no settlement.