SYSTEM AND METHOD FOR A HYBRID CLOCK AND PROXY AUCTION

• US 20140195369A1
• Filed: 03/03/2014
• Published: 07/10/2014
• Est. Priority Date: 11/06/2003
• Status: Abandoned Application

• Current Assignee: Lawrence M. Ausubel, Paul R. Milgrom, Peter C. Cramton
• Original Assignee: Paul R. Milgrom
• Inventors: Ausubel, Lawrence M., Cramton, Peter C., MILGROM, Paul R.
• Application Number:
  US14/195,579
• Publication Number:
  US 20140195369A1
• Time in Patent Office: Days
• US Class Current: 705/26.3
• CPC Class Codes: G06Q 30/08 Auctions

Abstract

This invention defines a computer system for conducting an auction of a plurality of items including outputting prices for items, receiving bids, outputting updated prices and receiving further bids and then determining an allocation of at least one of the items.

Claims

1. A system, including a first computer and a communication interface, said communication interface enabling communication between said first computer and one or more remote computers, said system for determining an allocation of a plurality of items to a plurality of bidders in an auction wherein bids are received and an allocation of the items to the bidders is determined at the first computer, said system comprising:

a) means for conveying prices for the items;

b) means for receiving at least one bid from at least one bidder at the first computer, said bid comprising an indicator of quantity for at least one of the items at the conveyed price;

c) means for conveying updated prices for the items;

d) means for receiving at least one further bid from at least one bidder at the first computer, said bid comprising an indicator of quantity for at least one of the items at the conveyed updated price; and

e) means for determining an allocation of the items at the first computer based on selecting a combination of received bids that optimizes revenues subject to a constraint that the selected combination of received bids is feasible.

2. The system of claim 1 which further includes means for updating prices based on the history of received bids and the available quantities.

3. The system of claim 2 wherein the updating of prices is based on the extent to which the quantities bid, summed over all bidders, exceed the quantities available in the auction.

4. The system of claim 1 which further includes means for applying an activity rule that limits current bids based on prior bids.

5. The system of claim 1 wherein the means for receiving at least one further bid includes means to constrain bids by a revealed-preference activity rule.

6. The system of claim 1 wherein the means for receiving at least one further bid includes means to constrain bids by a relaxed revealed-preference activity rule.

7. The system of claim 3 which further includes means for applying an activity rule that limits current bids based on prior bids.

8. The system of claim 3 wherein the means for receiving at least one further bid includes means to constrain bids by a revealed-preference activity rule.

9. The system of claim 3 wherein the means for receiving at least one further bid includes means to constrain bids by a relaxed revealed-preference activity rule.

10. The system of claim 1 which further includes means for receiving intra-round bids.

11. The system of claim 10 which further includes means for applying an activity rule that limits current bids based on prior bids.

12. The system of claim 11 which further includes means for updating prices based on the history of received bids and the available quantities.

13. The system of claim 12 wherein the updating of prices is based on the extent to which the quantities bid, summed over all bidders, exceed the quantities available in the auction.

14. The system of claim 1 wherein the plurality of items are telecommunications licenses or spectrum rights.

15. The system of claim 1 wherein the plurality of items are electric power or other commodity items.

16. A method implemented in a system comprising a first computer and a communication interface, said communication interface enabling communication between the first computer and one or more remote computers, said method for determining an allocation of a plurality of items to a plurality of bidders in an auction wherein bids are received and an allocation of the items to the bidders is determined at the first computer, said method comprising:

a) conveying prices for the items;

b) receiving at the first computer at least one bid from at least one bidder, said bid comprising an indicator of quantity for at least one of the items at the conveyed price;

c) conveying updated prices for the items;

d) receiving at the first computer, using the communication interface, at least one further bid from at least one bidder, said bid comprising an indicator of quantity for at least one of the items at the conveyed updated price; and

e) determining an allocation of the items at the first computer based on selecting a combination of received bids that optimizes revenues subject to a constraint that the selected combination of received bids is feasible.

17. The method of claim 16 which further includes updating prices based on the history of received bids and the available quantities.

18. The method of claim 17 wherein the updating of prices is based on the extent to which the quantities bid, summed over all bidders, exceed the quantities available in the auction.

19. The method of claim 16 which further includes applying an activity rule that limits current bids based on prior bids.

20. The method of claim 16 wherein the receiving at least one further bid includes constraining bids by a revealed-preference activity rule.

21. The method of claim 16 wherein the receiving at least one further bid includes constraining bids by a relaxed revealed-preference activity rule.

22. The method of claim 18 which further includes applying an activity rule that limits current bids based on prior bids.

23. The method of claim 18 wherein the receiving at least one further bid includes constraining bids by a revealed-preference activity rule.

24. The method of claim 18 wherein the receiving at least one further bid includes constraining bids by a relaxed revealed-preference activity rule.

25. The method of claim 16 which further includes receiving intra-round bids.

26. The method of claim 25 which further includes applying an activity rule that limits current bids based on prior bids.

27. The method of claim 26 which further includes updating prices based on the history of received bids and the available quantities.

28. The method of claim 27 wherein the updating of prices is based on the extent to which the quantities bid, summed over all bidders, exceed the quantities available in the auction.

29. The method of claim 16 wherein the plurality of items are telecommunications licenses or spectrum rights.

30. The method of claim 16 wherein the plurality of items are electric power or other commodity items.

31. A computer readable medium storing a plurality of instructions which, when executed in a system comprising a first computer and a communication interface, said communication interface enabling communication between the first computer and one or more remote computers, implements a method for determining an allocation of a plurality of items to a plurality of bidders in an auction wherein bids are received and an allocation of the items to the bidders is determined at the first computer, said method comprising:

a) conveying prices for the items;

b) receiving at the first computer at least one bid from at least one bidder, said bid comprising an indicator of quantity for at least one of the items at the conveyed price;

c) conveying updated prices for the items;

d) receiving at the first computer, using the communication interface, at least one further bid from at least one bidder, said bid comprising an indicator of quantity for at least one of the items at the conveyed updated price; and

e) determining an allocation of the items at the first computer based on selecting a combination of received bids that optimizes revenues subject to a constraint that the selected combination of received bids is feasible.

32. The medium of claim 31 wherein said method further includes updating prices based on the history of received bids and the available quantities.

33. The medium of claim 32 wherein, in said method, the updating of prices is based on the extent to which the quantities bid, summed over all bidders, exceed the quantities available in the auction.

34. The medium of claim 31 wherein said method further includes applying an activity rule that limits current bids based on prior bids.

35. The medium of claim 31 wherein, in said method, the receiving at least one further bid includes constraining bids by a revealed-preference activity rule.

36. The medium of claim 31 wherein, in said method, the receiving at least one further bid includes constraining bids by a relaxed revealed-preference activity rule.

37. The medium of claim 33 wherein said method further includes applying an activity rule that limits current bids based on prior bids.

38. The medium of claim 33 wherein, in said method, the receiving at least one further bid includes constraining bids by a revealed-preference activity rule.

39. The medium of claim 33 wherein, in said method, the receiving at least one further bid includes constraining bids by a relaxed revealed-preference activity rule.

40. The medium of claim 31 wherein said method further includes receiving intra-round bids.

41. The medium of claim 40 wherein said method further includes applying an activity rule that limits current bids based on prior bids.

42. The medium of claim 41 wherein said method further includes updating prices based on the history of received bids and the available quantities.

43. The medium of claim 42 wherein, in said method, the updating of prices is based on the extent to which the quantities bid, summed over all bidders, exceed the quantities available in the auction.

44. The medium of claim 31 wherein, in said method, the plurality of items are telecommunications licenses or spectrum rights.

45. The medium of claim 31 wherein, in said method, the plurality of items are electric power or other commodity items.