System and method for conducting electronic commerce

• US 7,398,229 B2
• Filed: 06/04/2004
• Issued: 07/08/2008
• Est. Priority Date: 06/04/2004
• Status: Expired due to Fees

• Current Assignee: Oxford University Innovation Limited (University of Oxford)
• Original Assignee: Isis Innovation Limited
• Inventors: Budish, Eric B.
• Primary Examiner(s): HAQ, NAEEM U
• Application Number:
  US10/860,039
• Publication Number:
  US 20050273417A1
• Time in Patent Office: 1,495 Days
• Field of Search: 705/26, 705/27
• US Class Current: 705/26.3
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

An electronic person-to-person double auction-like system that facilitates trade in many differs sorts of item via the World Wide Web or similar such interface. A plurality of sellers can post details of items for sale, including a minimum bid amount and buy price for each. A buyer can create a bid basket comprising bids in respect of a plurality of heterogeneous items available for sale, together with bid-withdrawal rules defining circumstances in which respective bid(s) are to be withdrawn. Bids are binding unless withdrawn. The auction for any item continues until a buyer posts the buy price therefor or the seller accepts a bid posted therefor.

Claims

1. Computer-implemented apparatus for conducting an automated auction in respect of one of a plurality of heterogeneous items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers, a database containing information relating to said buyers and sellers and items for sale via an auction, and a processor, wherein said database is communicably coupled to said entry terminals, the apparatus comprising computer software for execution by said processor to conduct said automated auction using said information contained in said database and to facilitate a transaction between a buyer and a seller as a result of said auction, the computer software performing the steps of:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, heterogeneous items to be offered for sale in respective auctions, together with a seller-defined buy price in respect of each heterogeneous item;

b) posting by or on behalf of a plurality of buyers, via respective entry terminals, contingently-binding bids associated with said heterogeneous items, said contingently-binding bids of each buyer being binding unless withdrawn in response to an acceptance of another of said contingently-binding bids of said buyer for a different one of said heterogeneous items; and

a) continuing an auction in respect of one of the heterogeneous items until a buyer posts a bid equal to the buy price thereof, or the seller associated with said heterogeneous item accepts a contingently-binding bid posted by a buyer in respect thereof, or the seller associated with said heterogeneous item withdraws said heterogeneous item from sale.

2. Apparatus according to claim 1, wherein said contingently-binding bids posted by or on behalf of said buyers have associated therewith respective bid-withdrawal rules defining circumstances in which respective contingently-binding bids are to be withdrawn.

3. Apparatus according to claim 2, wherein said bid-withdrawal rules are user-definable.

4. Apparatus according to claim 2, wherein said bid-withdrawal rules are variable.

5. Apparatus according to claim 1, arranged and configured to enable a seller to enter a plurality of items to be offered to sale in the form of a bundle, and to enable a buyer to post one or more contingently-binding bids in respect of the whole or selected portions of said bundle.

6. Apparatus according to claim 1, further arranged and configured to enable a buyer to post a contingently-binding bid in respect of a heterogeneous item which includes an offer price and one or more other conditions of said offer price.

7. Apparatus according to claim 1, further arranged and configured to enable buyers to enter, via said entry terminals, items required for procurement.

8. Apparatus according to claim 1, further arranged and configured to enable a seller to enter an item for sale together with a supply-withdrawal rule defining circumstances in which said item is to be withdrawn from sale.

9. Apparatus according to claim 1, wherein said contingently-binding bids must be less than or equal to said buy price.

10. Apparatus according to claim 1, further arranged and configured to enable a minimum bid price, less than said buy price, to be defined in respect of an item for sale, wherein allowable contingently-binding bids posted by or on behalf of said buyers must be between said minimum bid price and said buy price inclusive.

11. A computer-implemented method for conducting an automated auction in respect of one of a plurality of heterogeneous items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers, a database containing information relating to said buyers and sellers and items for sale via an auction, and a processor, wherein said database is communicably coupled to said entry terminals, the method being for conducting said automated auction using said information contained in said database and for facilitating a transaction between said a buyer and a seller as a result of said auction, and comprising:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, heterogeneous items to be offered for sale in respective auctions, together with a seller-defined buy price in respect of each heterogeneous item;

b) posting by or on behalf of one or more of a plurality of buyers, via one or more respective entry terminals, contingently-binding bids associated with heterogeneous items, said contingently-binding bids of each buyer being binding unless withdrawn in response to an acceptance of another of said contingently-binding bids of said buyer for a different one of said heterogeneous items; and

c) continuing an auction in respect of one of the heterogeneous items until a buyer posts a bid equal to the buy price thereof, or the seller associated with said heterogeneous item accepts a contingently-binding bid posted by a buyer in respect thereof, or the seller associated with said heterogeneous item withdraws said heterogeneous item from sale.

12. Computer-implemented apparatus for conducting an automated auction in respect of one of a plurality of heterogeneous items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers, a database containing information relating to said buyers and sellers and items for sale via an auction, and a processor, wherein said database is communicably coupled to said entry terminals, the apparatus comprising computer software for execution by said processor to conduct said automated auction using said information contained in said database and to facilitate a transaction between a buyer and a seller as a result of said auction, the computer software performing the steps of:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, heterogeneous items to be offered for sale in respective auctions, together with a seller-defined buy price in respect of each heterogeneous item;

b) posting by or on behalf of a plurality of buyers, via respective entry terminals, contingently-binding bids associated with one or more heterogeneous items, said contingently-binding bids being binding unless withdrawn in response to an acceptance of another of said contingently-binding bids for a different one of said heterogeneous items; and

c) continuing an auction in respect of one of the heterogeneous items until a buyer posts a bid equal to the buy price thereof, or the seller associated with said heterogeneous item accepts a contingently-binding bid posted by a buyer in respect thereof, or the seller associated with said heterogeneous item withdraws said heterogeneous item from sale.

13. Computer-implemented apparatus for conducting an automated auction in respect of one of a plurality of heterogeneous items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers, a database containing information relating to said buyers and sellers and items for sale via an auction, and a processor, wherein said database is communicably coupled to said entry terminals, the apparatus comprising computer software for execution by said processor to conduct said automated auction using said information contained in said database and to facilitate a transaction between a buyer and a seller as a result of said auction, the computer software performing the steps of:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, heterogeneous items to be offered for sale in respective auctions, together with a seller-defined buy price in respect of each heterogeneous item; and

b) posting by or on behalf of a single buyer, via a respective entry terminal, a bid basket comprising a plurality of contingently-binding bids associated with a at least two of said heterogeneous items, said contingently-binding bids being binding unless withdrawn in response to an acceptance of another of said contingently-binding bids for a different one of said heterogeneous items.

14. Computer-implemented apparatus for conducting an automated auction in respect of one of a plurality of heterogeneous items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers, a database containing information relating to said buyers and sellers and items for sale via an auction, and a processor, wherein said database is communicably coupled to said entry terminals, the apparatus comprising computer software for execution by said processor to conduct said automated auction using said information contained in said database and to facilitate a transaction between a buyer and a seller as a result of said auction, the computer software performing the steps of:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, heterogeneous items to be offered for sale in respective auctions, together with a seller-defined buy price in respect of each heterogeneous item, wherein the buy price of a heterogeneous item is variable during the course of a respective auction;

b) posting by or on behalf of a plurality of buyers, via respective entry terminals, contingently-binding bids associated with one of said heterogeneous items, said contingently-binding bids being binding unless withdrawn in response to an acceptance of another of said contingently-binding bids for a different one of said heterogeneous items; and

c) continuing an auction in respect of said one of said heterogeneous items until a buyer posts a bid equal to the buy price thereof, or the seller associated with said one of said heterogeneous items accepts a contingently-binding bid posted by a buyer in respect thereof, or the seller associated with said one of said heterogeneous items withdraws said one of said heterogeneous items from sale.

15. Computer-implemented apparatus for conducting in respect of a single buyer a plurality of automated auctions in respect of a plurality of respective heterogeneous items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers and a database containing information relating to said buyers and sellers and items for sale, wherein said database is communicably coupled via the Internet to said entry terminals, the apparatus comprising an Internet auction site for conducting said automated auctions using said information contained in said database and to facilitate a transaction between said buyer and one of said sellers as a result of one of said auctions, the Internet auction site performing the steps of:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, data relating to respective heterogeneous items to be offered for sale; and

b) posting by or on behalf of a single buyer, via an entry terminal, a bid basket comprising contingently-binding bids respectively associated with a plurality of heterogeneous items, said contingently-binding bids being binding unless withdrawn in response to an acceptance of another of said contingently-binding bids for a different one of said heterogeneous items.

16. Apparatus according to claim 15, further arranged and configured to terminate an auction in respect of a heterogeneous item when the seller associated with said heterogeneous item accepts a buyer'"'"'s contingently-binding bid for said heterogeneous item, or when a buyer bids the seller'"'"'s buy price for said heterogeneous item, or when a buyer withdraws a contingently-binding bid for said item.

17. Apparatus according to claim 15, wherein data relating to a heterogeneous item to be offered for sale includes a seller-defined buy price in respect of said heterogeneous item.

18. Apparatus according to claim 15, wherein an auction for an item is terminated when said buyer posts a bid equal to the buy price for said heterogeneous item.

19. A method for conducting in respect of a single buyer a plurality of automated auctions in respect of a plurality of respective heterogeneous items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers and a database containing information relating to said buyers and sellers and items for sale, wherein said database is communicably coupled via the Internet to said entry terminals, the method comprising providing an Internet auction site for conducting said automated auctions using said information contained in said database and to facilitate a transaction between a buyer and one of said sellers as a result of one of said auctions, the Internet auction site performing the steps of:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, data relating to respective heterogeneous items to be offered for sale;

b) posting by or on behalf of a buyer, via an entry terminal, a bid basket comprising contingently-binding bids respectively associated with a plurality of heterogeneous items, said contingently-binding bids being binding unless withdrawn in response to an acceptance of another of said contingently-binding bids for a different one of said heterogeneous items; and

c) terminating all of said auctions when a seller associated with one of the heterogeneous items accepts said buyer'"'"'s bid for the respective heterogeneous item.

20. Computer-implemented apparatus for conducting an automated auction in respect of one of a plurality of heterogeneous items for sale in a system including a plurality of entry terminals operable by respective buyers and sellers, a database containing information relating to said buyers and sellers and items for sale via an auction, and a processor, wherein said database is communicably coupled to said entry terminals, the apparatus comprising computer software for execution by said processor to conduct said automated auction using said information contained in said database and to facilitate a transaction between a buyer and a seller as a result of said auction, the computer software performing the steps of:

a) entering by or on behalf of a plurality of sellers, via respective entry terminals, heterogeneous items to be offered for sale in respective auctions, together with a seller-defined buy price and a supply-withdrawal rule in respect of each heterogeneous item, said supply-withdrawal rules defining circumstances in which respective heterogeneous items are to be considered withdrawn;

b) posting by or on behalf of a plurality of buyers, via respective entry terminals, contingently-binding bids associated with said heterogeneous items, said contingently-binding bids being binding unless withdrawn in response to an acceptance of another of said contingently-binding bids for a different one of said heterogeneous items; and

c) continuing an auction in respect of one of the heterogeneous items until a buyer posts a bid equal to the buy price thereof, or the seller associated with said heterogeneous item accepts a contingently-binding bid posted by a buyer in respect thereof, or the seller associated with said heterogeneous item withdraws said heterogeneous item from sale.