Method and system for differential index bidding in online auctions
First Claim
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1. A method of conducting an electronic online auction between a plurality of potential bidders for a lot defined by an originator of the auction, comprising the steps of:
- (a) establishing a price index as a basis for establishing an arbitrary non-zero competitive price point;
(b) communicating said price index to each of said plurality of potential bidders;
(c) receiving a corresponding bid from one or more of said plurality of potential bidders, wherein each said received bid includes a bid value that is specified relative to said price index;
(d) for each said received bid, calculating a corresponding bid differential between the bid value and said price index, wherein each said bid differential is zero, positive or negative depending on whether the bid value for the corresponding received bid is equal to, higher or lower than said price index respectively; and
(e) transmitting each said bid differential to said plurality of potential bidders, wherein a price paid to a winning bidder for said lot during a term of a sale agreement associated with said lot varies after close of said auction with fluctuations in market value of said price index.
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Abstract
A method and system for conducting electronic online auctions between a plurality of potential bidders using differential index bidding is disclosed. The originator of the auction specifies one or more indexes as the basis for establishing a competitive price point. The index can be a published market index, or a proprietary price array developed by the buyer. The bidders specify bids as a percentage or absolute amount off of the one or more indexes. The originator of the auction compares the submitted bids and provides feedback to the bidders.
255 Citations
25 Claims
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1. A method of conducting an electronic online auction between a plurality of potential bidders for a lot defined by an originator of the auction, comprising the steps of:
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(a) establishing a price index as a basis for establishing an arbitrary non-zero competitive price point;
(b) communicating said price index to each of said plurality of potential bidders;
(c) receiving a corresponding bid from one or more of said plurality of potential bidders, wherein each said received bid includes a bid value that is specified relative to said price index;
(d) for each said received bid, calculating a corresponding bid differential between the bid value and said price index, wherein each said bid differential is zero, positive or negative depending on whether the bid value for the corresponding received bid is equal to, higher or lower than said price index respectively; and
(e) transmitting each said bid differential to said plurality of potential bidders, wherein a price paid to a winning bidder for said lot during a term of a sale agreement associated with said lot varies after close of said auction with fluctuations in market value of said price index. - View Dependent Claims (2, 3, 6, 7, 8, 9, 10, 11, 12, 13, 14)
(f) determining a corresponding bidding rank for each of said plurality of potential bidders using each said bid differential; and
(g) communicating each said bidding rank to a corresponding one of said plurality of potential bidders.
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8. The method of claim 1, wherein at least one received bid in step (c) is a gross bid amount, and step (d) comprises setting the corresponding bid differential as an absolute difference between the gross bid amount and said price index.
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9. The method of claim 1, wherein at least one received bid in step (c) is a gross bid amount, and step (d) comprises setting the corresponding bid differential as a percentage difference between the gross bid amount and the price index.
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10. The method of claim 1, wherein at least one received bid in step (c) is an absolute difference relative to said price index, and step (d) comprises setting the corresponding bid differential to said absolute difference.
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11. The method of claim 1, wherein at least one received bid in step (c) is a percentage difference relative to the price index, and step (d) comprises setting the corresponding bid differential to the percentage difference multiplied by the price index.
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12. The method of claim 1, wherein said price index is an industry standard index.
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13. The method of claim 1, wherein said price index is defined by said originator of the electronic auction.
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14. The method of claim 1, wherein said price index is a schedule of prices, wherein at least one received bid in step (c) is comprised of relative bids for each item in the price schedule, and step (d) comprises setting the corresponding bid differential using a weighted average of the relative bids for the price schedule.
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4. A method of bidding in an electronic auction, comprising the steps of:
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a) receiving a bidding index reflective of a price of an item to be auctioned;
b) specifying a bid for said item, wherein said bid includes a bid value that is relative to said bidding index for said item;
c) calculating a bid differential between said bid value and said bidding index, wherein said bid differential is zero, positive or negative depending on whether the bid value is equal to, higher or lower than said bidding index respectively, and wherein value of said bid differential remains constant regardless of fluctuations in market value of said bidding index;
d) submitting said bid differential into the electronic auction; and
e) receiving a feedback from the electronic auction regarding a rank of the bid, wherein said rank is determined using said bid differential. - View Dependent Claims (15, 16, 17, 18, 19, 20)
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5. A computer-readable medium that includes instructions for entering bids in an electronic auction wherein said instructions, when executed by a processor, cause the processor to:
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a) receive a bidding index reflective of a price of an item to be auctioned;
b) allow receipt of a bid for said item, wherein said bid includes a bid value that is relative to said bidding index for said item;
c) calculate a bid differential between said bid value and said bidding index, wherein said bid differential is zero, positive or negative depending on whether the bid value is equal to, higher or lower than said bidding index respectively, and wherein value of said bid differential remains constant regardless of fluctuations in market value of said bidding index;
d) submit said bid differential into the electronic auction; and
e) receive a feedback from the electronic auction regarding a rank of the bid.
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21. A bidding device operated by a potential bidder during an electronic auction comprising:
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means for receiving a price index from a sponsor of the auction, wherein the price index is reflective of a price of an item to be auctioned;
means for allowing said potential bidder to specify a bid for said item, wherein said bid includes a bid value that is relative to said price index for said item;
means for calculating a bid differential between said bid value and said price index, wherein said bid differential is zero, positive or negative depending on whether the bid value is equal to, higher or lower than said price index respectively, and wherein value of said bid differential remains constant regardless of fluctuations in market value of said price index;
means for allowing said potential bidder to submit said bid differential into the electronic auction; and
means for receiving a feedback from the electronic auction regarding a rank of the potential bidder relative to other bidders in said auction. - View Dependent Claims (22, 23)
means for setting said bid differential as an absolute difference between a gross bid amount and said price index when said bid value is said gross bid amount;
means for setting said bid differential as a percentage difference between a gross bid amount and the price index when said bid value is said gross bid amount;
means for setting said bid differential to an absolute difference when said bid value is said absolute difference relative to said price index;
means for setting said bid differential to a percentage difference multiplied by said price index when said bid value is said percentage difference relative to said price index;
means for setting said bid differential to a percentage difference when said bid value is said percentage difference relative to said price index;
means for setting said bid differential to a percentage that is equivalent to an absolute difference divided by said price index when said bid value is said absolute difference relative to said price index; and
means for setting said bid differential to a weighted average of a plurality of bids specified by said potential bidder when said price index is a schedule of prices and when said potential bidder submits said plurality of bids for each item in said price schedule.
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24. A method of conducting an electronic online auction between a plurality of potential bidders for a lot defined by an originator of the auction, comprising the steps of:
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(a) using a price index as a basis for establishing an arbitrary non-zero competitive price point;
(b) receiving a corresponding bid differential from one or more of said plurality of potential bidders, wherein each said bid differential is specified relative to said price index, wherein each said bid differential is zero, positive or negative depending on whether the corresponding potential bidder'"'"'s bid is equal to, higher or lower than said price index respectively, and wherein value of each said bid differential remains constant regardless of fluctuations in market value of said price index; and
(c) transmitting each said bid differential to said plurality of potential bidders.
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25. A method of conducting an electronic online auction between a plurality of potential bidders for a lot defined by an originator of the auction, comprising the steps of:
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(a) using a price index as a basis for establishing an arbitrary non-zero competitive price point;
(b) receiving a corresponding bid from one or more of said plurality of potential bidders, wherein each said received bid includes a bid value that is specified relative to said price index;
(c) for each said received bid, calculating a corresponding bid differential between the bid value and said price index, wherein each said bid differential is zero, positive or negative depending on whether the bid value for the corresponding received bid is equal to, higher or lower than said arbitrary competitive price point respectively; and
(d) transmitting each said bid differential to said plurality of potential bidders, wherein a price paid to a winning bidder for said lot during a term of a sale agreement associated with said lot varies after close of said auction with fluctuations in market value of said price index.
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Specification