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

• US 5,620,182 A
• Filed: 12/13/1993
• Issued: 04/15/1997
• Est. Priority Date: 08/22/1990
• Status: Expired due to Fees

• Current Assignee: Michael T. Rossides
• Original Assignee: Michael T. Rossides
• Inventors: Rossides, Michael T.
• Primary Examiner(s): LAYNO, BENJAMIN
• Application Number:
  US08/165,676
• Time in Patent Office: 1,219 Days
• Field of Search: 273/138 A, 273/138 R, 273/460, 273/138.2, 364/412, 364/405, 194/211, 194/219, 194/230, 194/292, 463/25
• US Class Current: 273/138.2
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 30/0212 Chance discounts or incentives
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• 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

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, a probabalistic sorting method and system is disclosed allowing businesses to 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. 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 probabilistic method and system for sorting customers that includes a random number generator and means for registering customer identification information, for setting time periods when a customer is eligible to win, for setting the chances of winning, for operating the random number generator to determine whether customer has won, and for recording how many times a customer has engaged in the random selection process;

said method and system also comprising the following steps;

a. using said probability setting means to set a probability that a customer will be able to buy a commodity at a certain price, said probability represented by a fraction X/N, less than 1, where X and N are positive integers,

b. using said registration means to record a customer'"'"'s identification information,

c. operating said random number generator to determine whether said customer has won the right to buy the commodity at said price, said random number generator selecting an integer from 1-N,

c1. if the integer selected is less than or equal to X then the customer wins,

c2. if not, the customer does not win,

d. using said registration means to record that said customer has engaged in said random selection process.

2. A probabilistic method and system for sorting customers that includes a random number generator and means for registering customer identification information, for setting time periods when a customer is eligible to win, for setting the chances of winning, for operating the random number generator to determine whether customer has won, and for recording how many times a customer has engaged in the random selection process;

said method and system also comprising the following steps;

a. using said probability setting means to set a probability that a customer will be able to buy a commodity at a certain price, said probability represented by a fraction X/N, less than 1, where X and N are positive integers,

b. using said registration means to record a customer'"'"'s identification information,

c. using said time setting means to divide a period of time, T, into N units, where N is an integer, and operating said random number generator, said random number generator selecting an integer from 1-N,

d. awarding said customer the right to buy the commodity during the unit selected by the random number generator,

e. using said registration means to record that said customer has engaged in said random selection process.