System and Method for an Auction of Multiple Types of Items

• US 20110145133A1
• Filed: 02/25/2011
• Published: 06/16/2011
• Est. Priority Date: 05/18/2000
• Status: Active Grant

• Current Assignee: Lawrence M. Ausubel, Peter C. Cramton, Wynne P. Jones
• Original Assignee: Lawrence M. Ausubel, Peter C. Cramton, Wynne P. Jones
• Inventors: Jones, Wynne P., Ausubel, Lawrence M., Cramton, Peter C.
• Granted Patent: US 8,762,222 B2
• Time in Patent Office: Days
• 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 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 30/0212 Chance discounts or incentives
• CPC Class Codes: G06Q 30/0235 constrained by time limit or expiration date
• CPC Class Codes: G06Q 30/0239 Online discounts or incentives
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• 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 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

An improved system and method for a computer-implemented auction in which multiple types of items are auctioned together without imposing a particular division of supply or demand among the individual types of items. In some embodiments the auction of the present invention provides a means or method for establishing prices for the types of items, wherein the prices maintain a relationship. In other embodiments, the present invention provides a means or method for implying prices from price parameters in the bids received form bidders, based on a relation among the prices for the types of items. Market clearing may be defined by the condition that the aggregate quantity bid for all types of items is less than or equal to the available quantity of all types of items. The division among the types of items within is thus determined flexibly, based on the bids at the associated prices. In other embodiments, market clearing is defined by the condition that the quantity bid for one selected type of item is less than or equal to the available quantity of the selected type of item. The quantities of the other types of items are thus determined flexibly, based on the bids at the associated prices.

Claims

1. A computer system for conducting a dynamic auction of a plurality of items among a plurality of bidders, wherein bids are received by the computer system and a relationship is maintained among prices for the items, said system comprising:

means for receiving bids from at least one bidder, each of said bids including at least an indicator of at least one of the items;

means for determining whether the auction should continue, based on the received bids;

means for establishing updated prices, wherein a relationship is maintained among the prices for at least two of the items, following a determination that the auction should continue; and

means for outputting the updated prices.

2. A system as recited in claim 1 which further comprises means for constraining the bids from a given bidder at given prices, based on bids from the given bidder at other prices.

3. A system as recited in claim 2 wherein the items are grouped into two or more types of items and wherein the constraining means includes summation means for calculating a sum of quantities for two or more types of items.

4. A system as recited in claim 3 wherein the constraining means includes comparing means for comparing the calculated sum with a previous calculated sum for the same types of items.

5. A system as recited in claim 1 wherein the items are grouped into two or more types of items and wherein each received bid comprises a quantity parameter for at least one of the types of items.

6. A system as recited in claim 5 wherein the establishing means establishes a price for a first type of item and then determines prices for each other type of item based on the price for the first type of item.

7. A system as recited in claim 6 wherein the establishing means determines prices from a table or a predetermined schedule.

8. A system as recited in claim 7 wherein the establishing means includes interpolation means for interpolating prices among prices in the table or predetermined schedule.

9. A system as recited in claim 6 wherein the determining means includes summation means for calculating a sum of the quantity parameters for the first type of item.

10. A system as recited in claim 9 wherein the determining means includes comparing means for comparing the calculated sum with an available quantity parameter.

11. A system as recited in claim 1 wherein the types of items are contracts for provision of a commodity covering different time periods, wherein the time periods of at least some of the contracts have at least some overlap.

12. A system as recited in claim 5 wherein the plurality of types of items are contracts for provision of a commodity covering different time periods, wherein the time periods of at least some of the contracts have at least some overlap.

13. A system as recited in claim 12 wherein the determining means includes summation means for calculating a sum of the quantity parameters for the overlapping contracts.

14. A system as recited in claim 13 wherein the determining means includes comparing means for comparing the calculated sum with an available quantity parameter.

15. A system as recited in claim 1 wherein the relationship maintained among the prices is based on a table or a predetermined schedule.

16. A system as recited in claim 1 wherein the relationship maintained among the prices is based on an algorithm.

17. A method implemented in a system, said system comprising a first computer and at least one other computer which is located remotely from the first computer and interconnected by a communication system, for conducting a dynamic auction of a plurality of items among a plurality of bidders, wherein bids are received by the computer system and a relationship is maintained among prices for the items, said method comprising:

a) establishing prices for the items, wherein a relationship is maintained among the prices for at least two of the items;

b) outputting the established prices;

c) receiving bids from at least one bidder using the at least one other computer, each of said bids including at least an indicator of at least one of the items;

d) determining whether the auction should continue, based on the received bids, using the first computer; and

e) repeating a)-d), following a determination that the auction should continue wherein the established prices for the items, following a determination, include at least one price which differs from a price established prior to the determination.

18. A method as recited in claim 17 which further comprises constraining the bids from a given bidder at given prices, based on bids from the given bidder at other prices.

19. A method as recited in claim 18 wherein the items are grouped into two or more types of items and wherein the constraining includes calculating a sum of quantities for two or more types of items.

20. A method as recited in claim 19 wherein the constraining includes comparing the calculated sum with a previous calculated sum for the same types of items.

21. A method as recited in claim 17 wherein the items are grouped into two or more types of items and wherein each received bid comprises a quantity parameter for at least one of the types of items.

22. A method as recited in claim 21 wherein a price is established for a first type of item and then prices for each other type of item are determined based on the price for the first type of item.

23. A method as recited in claim 22 wherein the determined prices are determined from a table or a predetermined schedule.

24. A method as recited in claim 23 wherein establishing prices includes interpolating prices among prices included in the table or predetermined schedule.

25. A method as recited in claim 22 wherein determining whether the auction should continue includes calculating a sum of the quantity parameters for the first type of item.

26. A method as recited in claim 25 wherein determining whether the auction should continue includes comparing the calculated sum with an available quantity parameter.

27. A method as recited in claim 17 wherein the plurality of types of items are contracts for provision of a commodity covering different time periods, wherein

the time periods of at least some of the contracts have at least some overlap.

28. A method as recited in claim 21 wherein the plurality of types of items are contracts for provision of a commodity covering different time periods, wherein the time periods of at least some of the contracts have at least some overlap.

29. A method as recited in claim 28 wherein processing the received bids includes calculating a sum of the quantity parameters for the overlapping contracts.

30. A method as recited in claim 29 wherein processing the received bids includes comparing the calculated sum with an available quantity parameter.

31. A method as recited in claim 17 wherein the relationship maintained among the prices is based on a table or a predetermined schedule.

32. A method as recited in claim 17 wherein the relationship maintained among the prices is based on an algorithm.

33. A computer readable medium storing a sequence of instructions which, when executed on a system comprising a first computer and at least one other computer which is located remotely from the first computer and interconnected by a communication system, implements a method for conducting a dynamic auction of a plurality of items among a plurality of bidders, wherein bids are received by the system and a relationship is maintained among prices for the items, said method comprising:

a) establishing prices for the items, wherein a relationship is maintained among the prices for at least two of the items;

b) outputting the established prices;

c) receiving bids from at least one bidder using the at least one other computer, each of said bids including at least an indicator of at least one of the items;

d) determining whether the auction should continue, based on the received bids, using the first computer; and

e) repeating a)-d), following a determination that the auction should continue wherein the established prices for the items, following a determination, include at least one price which differs from a price established prior to the determination.

34. A computer readable medium as recited in claim 33 wherein the method further comprises constraining the bids from a given bidder at given prices, based on bids from the given bidder at other prices.

35. A computer readable medium as recited in claim 34 wherein items are grouped into two or more types of items and wherein the constraining includes calculating a sum of quantities for two or more types of items.

36. A computer readable medium as recited in claim 35 wherein the constraining includes comparing the calculated sum with a previous calculated sum for the same types of items.

37. A computer readable medium as recited in claim 33 wherein the items are grouped into two or more types of items and wherein each received bid comprises a quantity parameter for at least one of the types of items.

38. A computer readable medium as recited in claim 37 wherein a price is established for a first type of item and then prices for each other type of item are determined based on the price for the first type of item.

39. A computer readable medium as recited in claim 38 wherein the determined prices are determined from a table or a predetermined schedule.

40. A computer readable medium as recited in claim 39 wherein establishing prices includes interpolating prices among prices included in the table or predetermined schedule.

41. A computer readable medium as recited in claim 38 wherein determining whether the auction should continue includes calculating a sum of the quantity parameters for the first type of item.

42. A computer readable medium as recited in claim 41 wherein determining whether the auction should continue includes comparing the calculated sum with an available quantity parameter.

43. A computer readable medium as recited in claim 33 wherein the plurality of types of items are contracts for provision of a commodity covering different time periods, wherein the time periods of at least some of the contracts have at least some overlap.

44. A computer readable medium as recited in claim 37 wherein the plurality of types of items are contracts for provision of a commodity covering different time periods, wherein the time periods of at least some of the contracts have at least some overlap.

45. A computer readable medium as recited in claim 44 wherein processing the received bids includes calculating a sum of the quantity parameters for the overlapping contracts.

46. A computer readable medium as recited in claim 45 wherein processing the received bids includes comparing the calculated sum with an available quantity parameter.

47. A computer readable medium as recited in claim 33 wherein the relationship maintained among the prices is based on a table or a predetermined schedule.

48. A computer readable medium as recited in claim 33 wherein the relationship maintained among the prices is based on an algorithm.