Smooth end of auction on the internet

• US 6,665,649 B1
• Filed: 03/10/2000
• Issued: 12/16/2003
• Est. Priority Date: 03/10/2000
• Status: Expired due to Term

• Current Assignee: Google LLC (Alphabet Inc.)
• Original Assignee: International Business Machines Corporation
• Inventors: Megiddo, Nimrod
• Primary Examiner(s): Akers, Geoffrey R.
• Application Number:
  US09/523,100
• Time in Patent Office: 1,376 Days
• Field of Search: 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

The present invention provides a smooth ending system for an auction on the Internet. The system randomly selects an end time for the auction by picking an auction duration from a probability distribution, so that bidders have no preferences over the time of bidding. At any given time, assuming that the auction is still in process, there is a fixed probability, independent of the time that has elapsed since the beginning of the auction, that the auction will end within the next time unit.

Claims

1. A method for randomly varying the time period of an on-line auction, said on-line auction performed on a system comprising one or more remote computers, at least one remote seller, an auctioneer site and a communication network connecting said remote computers and said at least one remote seller to said auctioneer site, said method comprising the following steps:

receiving information associated with a prospective auction;

receiving a desired expected duration, d, associated with said prospective auction;

calculating a random auction duration D, based upon said received expected duration d;

setting an actual duration of said prospective auction to said calculated D,

receiving one or more bids from said one or more remote computers during said random auction duration period, and

wherein said one or more bids are received without disclosing said actual duration period D.

2. A method for randomly varying the time period of an on-line auction, as per claim 1, wherein said desired expected auction duration d, is received from said at least one seller.

3. A method for randomly varying the time period of an on-line auction, as per claim 1, wherein said calculated random auction duration, D, is calculated according to the formula D=−

d In (1−

r/m), wherein 0<

r<

m and m>

>

1.

4. A method for randomly varying the time period of an on-line auction, as per claim 1, wherein said received expected time, d, is received before said auction begins.

5. A method for randomly varying the time period of an online auction, as per claim 1, wherein if the number of bids received by said end of auction time, t+D, does not exceed a predetermined minimum, said method further comprising the steps of:

calculating a new random auction duration D′

based upon a number picked at random from an exponential distribution; and

extending said auction after time=t+D by amount equal to D′

.

6. A method for randomly varying the time period of an online auction, as per claim 1, wherein said on-line auction may be implemented locally or remotely on one or more computer-based systems, across networks or existing communication mediums.

7. A method for randomly varying the time period of an online auction, as per claim 6, wherein said communication network comprises any of the LANs, WANs, Internet or Web-based networks.

8. A method for automatically selecting a random end-time for an on-line auction, said method comprising the following steps:

receiving d, said d corresponding to a desired expected duration of said on-line auction;

selecting random number, r, from an exponential distribution, wherein 0<

r<

m and m>

>

1;

calculating a random auction duration, D, according to

9. A method for automatically selecting a random end-time for an auction, as per claim 8, wherein said d is received before said auction begins.

10. A system for selecting an auction end-time randomly comprising:

an auctioneer site which receives item information from at least one seller and bidding information from at least one bidder;

a computer server connected via communication lines to said at least one bidder and said at least one seller;

a database which receives and stores information pertaining to said auction;

an auction manager which manages said auction;

a receiver which accepts a proposed expected duration, d;

a calculator which computes a random auction duration, D, based on said proposed duration, d, and a number, r, picked at random from an exponential distribution; and

a timer which begins said auction at time to for a duration equal to said random auction duration, D.

11. A system for selecting an auction end-time randomly, as per claim 10, wherein said random auction duration, D, is calculated according to the formula D=−

d 1n (1−

r/m), wherein 0<

r<

m and m>

>

1.

12. A system for selecting an auction end-time randomly, as per claim 10, wherein said system may be implemented locally or remotely on one or more computer-based systems, across networks or existing communication mediums.

13. A system for selecting an auction end-time randomly, as per claim 12, wherein said networks comprises any of the following:

LANs, WANs, Internet or Web-based networks.

14. An article of manufacture comprising a computer product implementing a process for randomly selecting an end-time for an auction across networks comprising programmable code implementing:

receiving expected duration, d;

picking pseudo random number, r, from an exponential distribution, wherein 0<

r<

m and m>

>

1;

calculating a random auction duration, D, from an exponential distribution with an expectation equal to said received expected duration, d, and

m setting duration associated with said auction to D;

wherein said auction starts at time=t and said auction ends at time=t+D.

15. An article of manufacture comprising a computer product implementing a process for randomly selecting an end-time for an auction across networks, as per claim 14, wherein D=−

d 1n (1−

r/m).