On-line auction method and system facilitating the sale of multiple product units at prices varying with volume

• US 7,062,460 B1
• Filed: 10/12/1999
• Issued: 06/13/2006
• Est. Priority Date: 10/12/1999
• Status: Expired due to Term

• Current Assignee: Enduse.com, Inc., F Poszat Hu LLC (Intellectual Ventures LLC), Nextlife Computing, LLC
• Original Assignee: Enduse.com, Inc.
• Inventors: Growney, Kevin, Youssi, Patrick L.
• Primary Examiner(s): Chilcot, Richard
• Assistant Examiner(s): HARLE, JENNIFER I
• Application Number:
  US09/417,459
• Time in Patent Office: 2,436 Days
• Field of Search: 705/1, 705/26, 705/37, 705/80, 705/400, 705/27
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

An online auction system for auctioning off products includes a server system, plural buyer systems, and plural seller systems. The server system comprises a seller interface, a buyer interface, a price adjustment mechanism, and a bid manager. The seller interface performs an online bid setup process including obtaining, from a given seller system, price varying information and quantity information corresponding to the price varying information. The buyer interface communicates, to select buyer systems, bid information and product information, and accepts from a given buyer system a given quantity needed and a given bid. The price adjustment mechanism determines a given parity price for the given buyer, which varies according to the given quantity needed. The bid manager defines a given winning bid for the given buyer as a function of the given parity price and a rank of the given buyer in relation to other buyers.

Claims

1. A networked computer system for auctioning products on-line, comprising:

a seller interface to perform an auction set up process including obtaining from a seller information comprising a number of units of products to be auctioned, and price varying information that defines at least a price-quantity curve for the products;

a buyer interface to accept one or more requested quantities from one or more buyer systems coupled to the system; and

a mechanism coupled to the seller interface and to the buyer interface and configured to determine, based on at least the price-quantity curve and the requested quantities, one or more minimum bid amounts for the requested quantities;

wherein the mechanism is configured to compare a requested quantity to a current high bid quantity and to quote a minimum bid amount needed to win the requested quantity, wherein the quoted minimum bid amount has a lower per unit price than the per unit price of the current high bid quantity when the requested quantity is larger than the current high bid quantity and when a sum of the requested quantity and the current high bid quantity exceeds the number of units of products.

2. The system of claim 1, wherein the quoted minimum bid amount has a higher per unit price than the per unit price of the current high bid quantity when the requested quantity is not higher than the current high bid quantity, regardless of whether the sum of the requested quantity and the current high bid quantity exceeds the number of units of products.

3. The system of claim 2, wherein the quoted minimum bid amount has a per unit price that is higher than the per unit price of the current high bid quantity by a predefined bid increment when the requested quantity is not higher than the current high bid quantity and when the sum of the requested quantity and the current high bid quantity exceeds the number of units of products.

4. The system of claim 1, wherein the price varying information comprises a pricing model parameter that defines at least in part a shape of the price-quantity curve.

5. The system of claim 4, wherein the price-quantity curve is characterized by a strictly monotonously decreasing function of the parity unit prices.

6. The system of claim 1, wherein the auction set up process comprises obtaining from the seller system bid increment information that defines a bid increment amount.

7. The system of claim 1, wherein the products comprise goods.

8. The system of claim 1, wherein the products comprise services.

9. The system of claim 1, wherein the auction set up process includes obtaining, from the seller system, information that defines a bidding period.

10. The system of claim 9, wherein the auction set up process ends before the bidding period begins.

11. The system of claim 10, wherein the information that defines the bidding period includes an auction start date/time and an auction end date/time.

12. A method for auctioning products online, comprising:

performing an auction set up process that includes receiving from a seller a total lot quantity and price varying information that defines at least a price-quantity curve for the products to be auctioned;

receiving from a buyer system information representative of a requested quantity;

comparing the requested quantity to a quantity of a current high bid; and

quoting a minimum bid amount needed to win the requested quantity,

wherein the minimum bid amount has a lower per unit price than the per unit price of the current high bid when the requested quantity is larger than the current high bid quantity and when a sum of the requested quantity and the current high bid quantity exceeds the number of units of products.

13. The method of claim 12, wherein the minimum bid amount has a higher per unit price than the per unit price of the current high bid when the requested quantity is not higher than the current high bid quantity, regardless of whether the sum of the requested quantity and the current high bid quantity exceeds the number of units of products.

14. The method of claim 13, wherein the minimum bid amount has a per unit price that is higher than the per unit price of the current high bid by a predefined bid increment when the requested quantity is not higher than the current high bid quantity and when the sum of the requested quantity and the current high bid quantity exceeds the number of units of products.

15. The method of claim 12, wherein the price varying information comprises a pricing model parameter that defines at least in part a shape of the price-quantity curve.

16. The method of claim 15, wherein the price-quantity curve is characterized by a strictly monotonously decreasing function of the parity unit prices.

17. The method of claim 12, wherein the auction set up process comprises accepting bid increment information that defines a bid increment amount.

18. The method of claim 12, wherein the products comprise goods.

19. The method of claim 12, wherein the products comprise services.

20. The method of claim 12, wherein the auction set up process includes obtaining, from the seller system, information that defines a bidding period.

21. The method of claim 20, wherein the auction set up process ends before the bidding period begins.

22. The method of claim 20, wherein the information that defines the bidding period includes an auction start date/time and an auction end date/time.