Auction with interest rate bidding

• US 8,433,643 B2
• Filed: 07/13/2011
• Issued: 04/30/2013
• 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, Ackley, Matthew F., Cornell, William J.
• Primary Examiner(s): VEZERIS, JAMES A
• Application Number:
  US13/182,196
• Publication Number:
  US 20110270738A1
• Time in Patent Office: 657 Days
• Field of Search: 705/37, 705/35
• 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, apparatus, system and non-transitory machine-readable medium are provided for declining auctions with interest bidding. According to one embodiment, offers are received from respective bidders in a bid receiving process to transact a financial instrument, the offers being expressed as offered interest rates at which the corresponding respective bidders are willing to transact the financial instrument. The bid receiving process is utilized in a declining auction characterized by a reducing a published interest rate at which the financial instrument is offered for sale. The reducing of the published interest rate is performed automatically and responsive to a lack of bidding activity. Further there is a determining whether at least one of the offers satisfies transaction criterion.

Claims

1. A method including:

receiving, via a computer network, offers from bidders in a bid receiving process to transact a financial instrument, the offers being expressed as offered interest rates at which the respective bidders are willing to transact the financial instrument, the bid receiving process being utilized in a declining auction characterized by reducing a published interest rate at which the financial instrument is being offered for sale, the reducing of the published interest rate being performed automatically and responsive to a lack of bidding activity, the maintaining done at least in part through the use of one or more processors; and

determining whether at least one of the offers satisfies a transaction criterion, the determining done at least in part through the use of one or more processors.

2. The method of claim 1, further comprising identifying at least one of the offers as an accepted offer, the identifying including determining whether at least one of the offers satisfies the transaction criterion.

3. The method of claim 1, further including receiving information describing the financial instrument from a seller of the financial instrument.

4. The method of claim 3, wherein the information describing the financial instrument includes at least one of a maximum term of the financial instrument, a minimum term of the financial instrument, and a benefit in purchasing the financial instrument.

5. The method of claim 1, wherein the offers are received from respective client computers associated with the respective bidders.

6. The method of claim 1, wherein the reducing the published interest rate is responsive to receiving an interest rate for publication that is lower than the current published interest rate.

7. The method of claim 1, wherein the financial instrument comprises an interest-paying financial instrument including at least one of a bond, a certificate of deposit, an interest-bearing checking account, a savings account, and a money market account.

8. The method of claim 1, wherein the financial instrument comprises an interest-receiving financial instrument including at least one of a home mortgage loan, an automobile loan, a personal loan, a student loan, and a credit card.

9. The method of claim 1, wherein the published interest rate is selected from a group of interest rates consisting of a maximum interest rate having a highest interest rate that the seller is willing to pay to a buyer of the interest-paying financial instrument and a minimum interest rate comprising a lowest interest rate that the seller is willing to accept from the buyer of the interest-receiving financial instrument.

10. An apparatus, comprising:

a plurality of client computers; and

a server computer coupled with the plurality of client computers via a computer network, the server computer is to receive offers in a bid receiving process from respective bidders to transact the financial instrument, the offers are expressed as offered interest rates at which the bidders are willing to transact the financial instrument, the bid receiving process is a declining auction and is characterized by a reduction of a published interest rate at which the financial instrument is offered for sale during the bid receiving process, the reduction of the published interest rate is performed automatically by the server computer responsive to a lack of bidding activity, and the server computer determines whether at least one of the offers satisfies a transaction criterion.

11. A system, comprising:

a plurality of first computers; and

a second computer coupled to the plurality of first computers over a network, the second computer to receive offers from respective bidders in a bid receiving process to transact the financial instrument, the offers are expressed as offered interest rates at which the bidders are willing to transact the financial instrument, the bid receiving process is a declining auction and is characterized by a reduction of a published interest rate at which the financial instrument is offered for sale, the second computer automatically reduces the published interest rate responsive to a lack of bidding activity, and the second computer determines whether at least one of the offers satisfies a transaction criterion.

12. The system of claim 11, wherein the second computer identifies at least one of the offers as an accepted offer by a determination whether the at least one of the offers satisfies the transaction criterion.

13. The system of claim 11, wherein the second computer receives information describing the financial instrument from the seller.

14. The system of claim 11, wherein the information describing the financial instrument includes at least one of a maximum term of the financial instrument, a minimum term of the financial instrument, and a benefit in purchasing the financial instrument.

15. The system of claim 11, wherein the plurality of first computers includes a first computer and wherein the second computer receives the offers from the first computer that is operated by a bidder.

16. The system of claim 11, wherein the reducing of the published interest rate is responsive to receipt of an interest rate that is lower than the published interest rate.

17. The system of claim 11, wherein the financial instrument comprises an interest-paying financial instrument including at least one of a bond, a certificate of deposit, an interest-bearing checking account, a savings account, and a money market account.

18. The system of claim 11, wherein the financial instrument comprises an interest-receiving financial instrument including at least one of a home mortgage loan, an automobile loan, a personal loan, a student loan, and a credit card.

19. The system of claim 11, wherein the published interest rate is selected from a group of interest rates consisting of a maximum interest rate comprising a highest interest rate that the seller is willing to pay to a buyer of the interest-paying financial instrument and a minimum interest rate comprising a lowest interest rate that the seller is willing to accept from the buyer of the interest-receiving financial instrument.

20. A non-transitory machine-readable medium having stored thereon data representing sets of instructions which, when executed by a machine, cause the machine to:

receive, via a computer network, offers from respective bidders in a bid receiving process to transact a financial instrument, the offers are expressed as offered interest rates at which the bidders are willing to transact the financial instrument, the bid receiving process is a declining auction characterized by a reduction of the published interest rate at which the financial instrument is offered for sale, the reduction of the published interest rate is performed automatically and responsive to a lack of bidding activity; and

determine whether at least one of the offers satisfies a transaction criterion.