Method and system for correcting market failures with participant isolation in dutch style online auctions

• US 7,835,957 B1
• Filed: 01/24/2000
• Issued: 11/16/2010
• Est. Priority Date: 01/24/2000
• Status: Expired due to Term

• Current Assignee: Ariba Incorporated (SAP SE)
• Original Assignee: Ariba Incorporated (SAP SE)
• Inventors: Kinney, Sam E. Jr.
• Primary Examiner(s): Karmis; Stefanos
• Assistant Examiner(s): LEMIEUX, JESSICA
• Application Number:
  US09/490,867
• Time in Patent Office: 3,949 Days
• Field of Search: 705 35- 37
• US Class Current: 705/35
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A method and system for conducting online auctions in a Dutch format is disclosed. Isolation of bidders in the online Dutch auction is exploited by creating unique views into the Dutch auction. In one embodiment, posted prices are originally defined in the context of the originator of the auction. These posted prices are transformed into the individual contexts of potential bidders prior to display at the bidder computer system. Multiple views into the Dutch auction are thereby supported. In another embodiment, feedback formats are specified for one or more of the potential bidders. The specified feedback formats enable the originator of the auction to control the types of market clearing information that will be withheld from the various potential bidders.

Claims

1. A computer-implemented method in an auction between a plurality of potential bidders, comprising:

generating a sequence of values;

creating a buyer view of the auction that includes a first value included in the sequence of generated values;

prior to displaying a price to a first potential bidder, using a processor to transform, using a characteristic associated with a quality of an auction item, said first value into a first bidder comparative bid parameter value;

creating a first bidder view of the auction, for display to said first potential bidder, that includes the first bidder comparative bid parameter value;

prior to displaying a price to a second potential bidder, using a processor to transform said first value into a second bidder comparative bid parameter value; and

creating a second bidder view of the auction, for display to said second potential bidder, that includes the second bidder comparative bid parameter value.

2. The method of claim 1, wherein generating a sequence of values comprises predefining a series of price increments or decrements.

3. The method of claim 2, wherein generating a sequence of values further comprises changing said predefined series of price increments or decrements in real-time during the auction.

4. The method of claim 1, wherein transforming comprises performing one of a linear transformation, non-linear transformation, and lookup table transformation.

5. The method of claim 1, wherein transforming comprises performing a combination of linear, non-linear, and lookup table transformations simultaneously.

6. A machine readable medium having stored thereon executable code which causes a machine to perform a method to conduct an auction between a plurality of bidders, said method comprising:

generating a sequence of values;

creating a buyer view of the auction that includes a first value included in the sequence of generated values;

prior to displaying a price to a first potential bidder, transforming, using a characteristic associated with a quality of an auction item, said first value into a first bidder comparative bid parameter value;

creating a first bidder view of the auction, for display to a first potential bidder, that includes the first bidder comparative bid parameter value;

prior to displaying a price to a second potential bidder, transforming said first value into a second bidder comparative bid parameter value; and

creating a second bidder view of the auction, for display to said second potential bidder, that includes the second bidder comparative bid parameter value.

7. The medium of claim 6, wherein generating a sequence of values comprises predefining a series of price increments or decrements.

8. The medium of claim 7, wherein generating a sequence of values further comprises changing said predefined series of price increments or decrements in real-time during the auction.

9. The medium of claim 6, wherein transforming comprises performing one of a linear transformation, non-linear transformation, and lookup table transformation.

10. The medium of claim 6, wherein transforming comprises performing a combination of linear, non-linear, and lookup table transformations simultaneously.

11. A system for conducting an auction between a plurality of bidders, comprising:

a processor; and

a memory coupled with the processor, wherein the memory is configured to provide the processor with instructions which when executed cause the processor to;

generate a sequence of values;

create a buyer view of the auction that includes a first value included in the sequence of generated values;

prior to displaying a price to a first potential bidder, transform, using a characteristic associated with a quality of an auction item, said first value into a first bidder comparative bid parameter value;

create a first bidder view of the auction, for display to a first potential bidder, that includes the first bidder comparative bid parameter value;

prior to displaying a price to a second potential bidder, transform said first value into a second bidder comparative bid parameter value; and

create a second bidder view of the auction, for display to said second potential bidder, that includes the second bidder comparative bid parameter value.

12. The system of claim 11, wherein generating a sequence of values includes predefining a series of price increments or decrements.

13. The system of claim 12, wherein generating a sequence of values includes changing said predefined series of price increments or decrements in real-time during the auction.

14. The system of claim 11, wherein transforming includes performing one of a linear transformation, non-linear transformation, and lookup table transformation.

15. The system of claim 11, wherein transforming includes performing a combination of linear, non-linear, and lookup table transformations simultaneously.