Ascending bid auction for multiple objects

• US 7,966,247 B1
• Filed: 09/19/2005
• Issued: 06/21/2011
• Est. Priority Date: 01/04/1996
• Status: Active Grant

• Current Assignee: Efficient Auctions, LLC
• Original Assignee: Efficient Auctions, LLC
• Inventors: Ausubel, Lawrence M.
• Primary Examiner(s): Poinvil; Frantzy
• Application Number:
  US11/228,270
• Time in Patent Office: 2,101 Days
• Field of Search: 705 10- 44
• US Class Current: 705/37
• 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
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: H04L 12/1809 for auctioneering devices

Abstract

An automated system for conducting an auction and a method for operating the system. The system comprises a plurality of bid entry terminal and a bidding information processor communicatively coupled to the bid entry terminals. Bidders at the bid entry terminals observe displayed information and enter bids accordingly. The bidding information processor and the bid entry terminals communicate and process information in order to conduct an auction. The method involves conducting an auction in which the price paid by bidders is independent of their own bids, in which participants are provided with information concerning their competitors'"'"' bids as the auction progresses, and in which the confidentiality of high values is maintained. This provides the advantage of improving the economic efficiency of the auction design over the existing art.

Claims

1. A method for conducting an auction of a plurality of items, the auction including a bidding process and allowing submission of bids on the items at a plurality of times, said method implemented on a system including plural bid entry terminals and a bidding information processor which is located remotely from at least one said bid entry terminal and interconnected with said one bid entry terminal using a communications network, the method comprising:

a) transmitting information from the bidding information processor regarding the bidding process;

b) thereafter, receiving bids at the bidding information processor, the bids submitted by a plurality of bidders using the bid entry terminals, at least one of said bids including at least one quantity parameter and indicating quantities of the items that a bidder wishes to transact at each of at least two prices;

c) thereafter, determining, at the bidding information processor, whether the auction should end or continue, based on a comparison of a sum of quantities that bidders wish to transact and an available quantity of items;

d) thereafter, generating updated information regarding the bidding process for transmission to at least one bidder; and

e) initiating at least one additional opportunity for bidders to submit bids following a determination that the auction should continue.

2. The method of claim 1 wherein the updated information regarding the bidding process includes bidding history.

3. The method of claim 2 wherein the bidding history includes disaggregated quantities that bidders wish to transact.

4. The method of claim 2 wherein the bidding history includes a sum of quantities that bidders wish to transact.

5. The method of claim 1 further including constraining each bid that a bidder may submit.

6. The method of claim 5 wherein the constraining limits said quantity parameter of a given bid by a given bidder to be no greater than a quantity parameter of a bid by the given bidder submitted at an earlier time.

7. The method of claim 5 wherein the constraining limits a bid that a bidder may submit so that the quantity indicated at a higher price can be no greater than the quantity indicated at any lower price.

8. A computer system for implementing an auction of a plurality of items, the auction including a bidding process and allowing submission of bids on the items at a plurality of times, the system comprising:

a) transmitting means for transmitting a signal representing information regarding the bidding process;

b) receiving means for receiving bids submitted by a plurality of bidders, at least one of said bids including at least one quantity parameter and indicating quantities of the items that a bidder wishes to transact at each of at least two prices;

c) determining means for determining whether the auction should end or continue, based on a comparison of a sum of quantities that bidders wish to transact and an available quantity of items;

d) generating means for generating updated information regarding the bidding process for transmission to at least one bidder; and

e) initiating means for initiating at least one additional opportunity for bidders to submit bids following a determination that the auction should continue.

9. The system of claim 8 wherein the updated information regarding the bidding process includes bidding history.

10. The system of claim 9 wherein the bidding history includes disaggregated quantities that bidders wish to transact.

11. The system of claim 9 wherein the bidding history includes a sum of quantities that bidders wish to transact.

12. The system of claim 8 which further includes constraining means for constraining each bid that a bidder may submit.

13. The system of claim 12 wherein the constraining means constrains said quantity parameter of a given bid by a given bidder to be no greater than a quantity parameter of a bid by the given bidder submitted at an earlier time.

14. The system of claim 12 wherein the constraining means constrains a bid that a bidder may submit so that the quantity indicated at a higher price can be no greater than the quantity indicated at any lower price.