Expected value payment method and system for reducing the expected per unit costs of paying and/or receiving a given amount of a commodity

• US 5,269,521 A
• Filed: 12/13/1991
• Issued: 12/14/1993
• Est. Priority Date: 08/22/1990
• Status: Expired due to Term

• Current Assignee: Michael T. Rossides
• Original Assignee: Michael T. Rossides
• Inventors: Rossides, Michael T.
• Primary Examiner(s): LAYNO, BENJAMIN
• Application Number:
  US07/804,479
• Time in Patent Office: 732 Days
• Field of Search: 273/128 R, 273/138 A, 364/412, 364/405, 194/211, 194/219, 194/230, 194/292
• US Class Current: 705/14.14
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 30/0212 Chance discounts or incentives
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G07B 15/00 Arrangements or apparatus for collecting fares, tolls or entrance fees at one or more control points handling coins or valuable papers, e.g. banknotes, G07D; apparatus for vending or hiring articles or services activated by coins, credit cards, paper currency or the like G07F7/00, G07F17/00
• CPC Class Codes: G07C 15/006 electronically
• CPC Class Codes: G07F 17/145 for revolving doors or turnstiles
• CPC Class Codes: G07F 9/002 Vending machines being part of a centrally controlled network of vending machines

Abstract

Disclosed is an Expected Value Payment Method for the purpose of reducing the expected per unit costs incurred in paying and/or receiving a given amount of a commodity. An Expected Value Payment Method uses a random number supplier to decide bets that can reduce expected per unit costs in two ways. First, expected per unit costs can be reduced for the payer and/or receiver of a commodity by giving the receiver a chance to win a greater amount of the commodity than a given amount, the greater amount having a lower per unit cost than the given amount which was originally to be paid and received. Second, in special situations, certain businesses can offer customers who bet to win a given amount of a commodity a better expected price for that amount than the price offered to customers paying conventionally for that same amount. Also disclosed are Expected Value Payment Execution Methods and Systems that make an Expected Value Payment Method practical in the marketplace and methods and systems for preventing cheating in expected value payment bets.

Claims

1. A method of betting between a first party, called the Buyer, and a second party, called the Seller, for reducing the expected per unit cost of paying and/or receiving a given amount of a commodity comprising the steps of:

providing a commodity, said commodity representing a plurality of units, defining an amount of a commodity as a specific number of units of said commodity;

providing money, said money representing a plurality of units of currency, defining an amount of money as a specific number of units of said currency;

providing a random number generating device comprising a means for selecting a given amount of money and a means for randomly generating an integer from a set of consecutive integers, the total number of consecutive integers from which said integer is randomly selected being equal to the total number of units of currency represented in said selected amount of money;

wherein said set of consecutive integers comprises integers starting at the smallest integer "1" and ending with the largest integer equal to the total number of units of currency represented in said selected amount of money;

defining a per unit cost of an amount of commodity as the amount of money to be paid for said amount of said commodity divided by the number of units in said amount of said commodity;

said Buyer intending to buy an amount of a commodity from said Seller and said Buyer only willing to spend a first amount of money for said commodity;

said Seller providing a first offer wherein said Buyer would pay said first amount of money to said Seller, and said Seller would then pay said Buyer a first amount of said commodity at a first per unit cost;

said Seller providing a second offer wherein said Buyer would pay a second amount of money which is greater than the first amount of money to said Seller, and said Seller would then pay said Buyer a second amount of said commodity which is greater than the first amount at a second per unit cost which is less than said first per unit cost;

said Buyer wishing to buy an amount of said commodity at said second per unit cost and willing to only spend said first amount of money, entering into a bet with said Seller, said Buyer paying said Seller said first amount of money;

operating said random number generating device by first selecting said second amount of money on the device, then operating said means for randomly generating an integer, wherein the odds of the random number generating device selecting a winning integer favorable to the Buyer is equal to the first amount of money divided by the second amount of money;

said Seller paying said second amount of said commodity to said Buyer if the randomly selected integer is a winning integer;

said Seller paying nothing to said Buyer if the randomly generated integer is a losing integer."

2. A method of betting between a first party, called the Payer, and a second party, called the Receiver, for reducing the expected per unit cost of paying and/or receiving a given amount of money comprising the steps of:

providing money, said money representing a plurality of units of currency, defining an amount of money as a specific number of units of said currency;

providing a random number generating device comprising a means for selecting a given amount of money and a means for randomly generating an integer from a set of consecutive integers, the total number of consecutive integers from which said integer is randomly selected being equal to the total number of units of currency represented in said selected amount of money;

wherein said set of consecutive integers comprises integers starting at the smallest integer "1" and ending with the largest integer equal to the total number of units of currency represented in said selected amount of money;

defining a per unit cost of a paying and/or receiving an amount of money as the cost associated with paying and/or receiving said amount, as determined by the Payer and/or Receiver of said amount, divided by the number of units of currency in said amount;

said Payer obligated to pay to said Receiver a first amount of a money having a first per unit cost;

said Payer providing an offer of a bet wherein in exchanger for releasing the Payer from the obligation to pay the first amount of money, said Receiver would upon winning said bet receive a second amount of money which is greater than the first amount of money, having a second per unit cost which is less than said first per unit cost;

said Payer entering into said bet with said Receiver;

operating said random number generating device by first selected said second amount of money on the device, then operating said means for randomly generating an integer, wherein the odds of the random number generating device selecting a winning integer favorable to the Receiver is equal to the first amount of money divided by the second amount of money;

said Payer paying said second amount of money to said Receiver if the randomly selected integer is a winning integer;

said Payer paying nothing to said Receiver if the randomly generated integer is a losing integer."