Auction with interest rate bidding

• US 8,015,103 B2
• Filed: 02/22/2010
• Issued: 09/06/2011
• Est. Priority Date: 12/11/2003
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: eBay Inc.
• Inventors: Watt, William R. II, Cornell, William J., Ackley, Matthew F.
• Primary Examiner(s): Kramer; James A
• Assistant Examiner(s): Vezeris; James A
• Application Number:
  US12/710,294
• Publication Number:
  US 20100257087A1
• Time in Patent Office: 561 Days
• Field of Search: 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and system are provides for an auction with interest rate bidding. The system receives a starting interest rate and a maximum interest rate for an interest-paying (IP) item at a computer. The system publishes the IP item for sale at the starting interest rate, initiates a declining auction and receives bids in the declining auction for the IP item. The system terminates the declining auction based on a predetermined period of time and identifies one or more bids that respectively include an interest rate that is lower than the maximum interest rate. Finally, the system selects a lowest interest rate bid from the one or more bids as a winning bid.

Claims

1. A method, comprising:

receiving a starting interest rate and a maximum interest rate for an interest-paying (IP) item at a computer, the maximum interest rate being identified by a seller as a highest interest rate that the seller pays a buyer, the receiving done at least in part using one or more processors that are included in one or more computer systems that respectively include a set of instructions causing the one or more computers systems to perform the receiving;

publishing the IP item for sale at the starting interest rate at a first computer, the publishing done at least in part using one or more processors;

initiating a declining auction and receiving at least one bid in the declining auction for the IP item;

terminating the declining auction based on a predetermined period of time, the predetermined period of time being identified based on a selling price of a plurality of IP items in other declining auctions;

identifying one or more bids that respectively include an interest rate that is lower than the maximum interest rate; and

selecting a lowest interest rate bid from the one or more bids as a winning bid.

2. The method of claim 1, further comprising receiving the one or more bids at the first computer.

3. The method of claim 1, wherein the IP item comprises one or more financial instruments.

4. The method of claim 3, wherein the one or more financial instruments comprise at least one of a bond, a certificate of deposit, an interest-bearing checking account, a savings account, and a money market account.

5. The method of claim 1, wherein the predetermined period of time is modified after the auction has been initiated.

6. The method of claim 5, wherein the predetermined period of time is modified based on a number of buyers reviewing the IP item, a number of bids received for the IP item, and a current interest rate.

7. The method of claim 1, wherein the receiving of the starting interest rate comprises receiving the interest rate from the seller of the IP item.

8. The method of claim 1, wherein the receiving of the starting interest rate comprises automatically setting the interest rate based at least one of historical information associated with other IP items, buyer input, and the maximum interest rate for the interest-paying IP item.

9. The method of claim 1, further comprising communicating a web page to a client computer, the web page including a drop down menu from which an interest rate for a bid may be selected.

10. A system, comprising:

at least one processor; and

a declining auction application that is executable by the at least one processor to receive a starting interest rate and a maximum interest rate for an interest-paying (IP) item at a computer, the maximum interest rate being identified by a seller as a highest interest rate that the seller pays a buyer, the receiving done at least in part using one or more processors, the declining auction application is further executable by the at least one processor to publish the IP item for sale at the starting interest rate at a first computer, the publishing done at least in part using one or more processors, the declining auction application is further executable by the at least one processor to initiate a declining auction and receiving at least one bid in the declining auction for the IP item, the declining auction application is further executable by the at least one processor to terminate the declining auction based on a predetermined period of time, the predetermined period of time being identified based on a selling price of a plurality of IP items in other declining auctions, the declining auction application is further executable by the at least one processor to identify one or more bids that respectively includes an interest rate that is lower than the maximum interest rate and to select a lowest interest rate bid from the one or more bids as a winning bid.

11. The system of claim 10, wherein the declining auction application is further executable by the at least one processor to receive the one or more bids at the first computer.

12. The system of claim 10, wherein the IP item comprises one or more financial instruments.

13. The system of claim 12 wherein the one or more financial instruments comprise at least one of a bond, a certificate of deposit, an interest-bearing checking account, a savings account, and a money market account.

14. The system of claim 10, wherein the predetermined period of time is modified after the auction has been initiated.

15. The system of claim 14, wherein the predetermined period of time is modified based on a number of buyers reviewing the IP item, a number of bids received for the IP item, and a current interest rate.

16. The system of claim 10, wherein the declining auction application is further executable by the at least one processor to receive the interest rate from the seller of the IP item.

17. The system of claim 10, wherein the declining auction application is further executable by the at least one processor to automatically set the interest rate based at least one of historical information associated with other IP items, buyer input, and the maximum interest rate for the interest-paying IP item.

18. The system of claim 10, wherein the declining auction application is further executable by the at least one processor to communicate a web page to a first client computer, the web page including a drop down menu from which an interest rate for a bid may be selected.

19. A machine readable medium having stored thereon instructions that when executed by a machine cause the machine to perform the method including:

receiving a starting interest rate and a maximum interest rate for an interest-paying (IP) item at a computer, the maximum interest rate being identified by a seller as a highest interest rate that the seller pays a buyer, the receiving done at least in part using one or more processors;

publishing the IP item for sale at the starting interest rate at a first computer, the publishing done at least in part using one or more processors;

initiating a declining auction and receiving at least one bid in the declining auction for the IP item;

terminating the declining auction based on a predetermined period of time, the predetermined period of time being identified based on a selling price of a plurality of IP items in other declining auctions;

identifying one or more bids that respectively include an interest rate that is lower than the maximum interest rate; and

selecting a lowest interest rate bid from the one or more bids as a winning bid.