System and method for promoting competition in an auction

• US 7,974,908 B1
• Filed: 07/29/2002
• Issued: 07/05/2011
• Est. Priority Date: 07/29/2002
• Status: Active Grant

• Current Assignee: Ariba Incorporated (SAP SE)
• Original Assignee: Ariba Incorporated (SAP SE)
• Inventors: Walker, Michael J., Hommrich, Thomas P., Casciato, Scott A.
• Primary Examiner(s): Milef; Elda
• Application Number:
  US10/207,231
• Time in Patent Office: 3,263 Days
• Field of Search: 705/37, 705/26, 705/35
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A system and method for promoting competitive bidding in an online auction that has a bidder, a favored bidder, and a sponsor, including receiving bids from the bidder and the favored bidder, deriving a relative spread, determining a market position for the bidder and the favored bidder, and displaying feedback information to at least one of the favored bidder or the bidder. The relative spread represents a minimum premium amount required before the sponsor awards a contract to a non-favored bidder. The market position reflects a comparison of the bid of the favored bidder to the bid of the bidder using the relative spread and the feedback information shows the market position.

Claims

1. A method of promoting competitive bidding in an online auction having a non-favored bidder, a favored bidder, and a sponsor, said method comprising:

receiving a first bid from said non-favored bidder;

receiving a second bid from said favored bidder;

determining by a processor, a market position for said non-favored bidder in relation to said favored bidder, at least in part by determining a relative spread using the second bid;

displaying feedback information to at least one of said non-favored bidder and said favored bidder, said feedback information comprising said market position;

receiving a third bid from at least one of the non-favored and favored bidder; and

updating the market position for at least one of said non-favored bidder and said favored bidder using the received third bid.

2. The method of claim 1, further comprising:

selecting a winning bidder from said non-favored bidder and said favored bidder based on said market position.

3. The method of claim 2, further comprising:

awarding said contract to said winning bidder.

4. The method of claim 1, wherein said non-favored bidder is included in a plurality of non-favored bidders and said displaying comprises:

deciding whether at least one of said favored bidder and at least one of said non-favored bidders qualify to receive said feedback information; and

transmitting said feedback information to at least one of said favored bidder and at least one of said non-favored bidders if at least one of said favored bidder and at least one of said non-favored bidders qualify.

5. The method of claim 4, wherein said deciding comprises:

determining at least one of;

whether at least one of said non-favored bidders places at least one bid, whether at least one of said non-favored bidders is leading, whether at least one of said non-favored bidders enters said bid within a predetermined time period, whether said bid of at least of said non-favored bidders meets said bid of said favored bidder, whether said bid of at least one of said non-favored bidders surpasses at least one of said bid of said favored bidder by a predetermined amount, and whether said bid of said favored bidder is less than a reserve price.

6. The method of claim 1, wherein said non-favored bidder is included in a plurality of non-favored bidders and further comprising:

determining, for each bidder in the plurality of non-favored bidders a relative score;

assigning a rank to each of said non-favored bidders and said favored bidder based on said relative score; and

designating said market position for each of said non-favored bidders and said favored bidder based on said rank.

7. The method of claim 1, wherein said determining a market position comprises designating said bid of said favored bidder as said relative score of said favored bidder.

8. The method of claim 1, wherein said displaying comprises showing said market position in at least one of a textual representation and a graphical representation.

9. A machine readable storage medium for promoting competitive bidding in an online auction having a non-favored bidder, a favored bidder, and a sponsor, said machine readable medium comprising computer instructions for:

receiving a first bid from said non-favored bidder;

receiving a second bid from said favored bidder;

determining a market position for said non-favored bidder in relation to said favored bidder, at least in part by determining a relative spread using the second bid;

displaying feedback information to at least one of said bidder and said favored bidder and, said feedback information comprising said market position;

receiving a third bid from at least one of the non-favored and favored bidder; and

updating the market position for at least one of said non-favored bidder and said favored bidder using the received third bid.

10. The machine readable medium of claim 9, further comprising instructions for:

selecting a winning bidder from said non-favored bidder and said favored bidder based on said market position.

11. The machine readable medium of claim 10, further comprising instructions for awarding said contract to said winning bidder.

18. The machine readable medium of claim 9, wherein said non-favored bidder is included in a plurality of non-favored bidders and said displaying comprises:

deciding whether at least one of said favored bidder and at least one of said non-favored bidders qualify to receive said feedback information; and

transmitting said feedback information to at least one of said favored bidder and at least one of said non-favored bidders if at least one of said favored bidder and at least one of said non-favored bidders qualify.

19. The machine readable medium of claim 18, wherein said deciding comprises:

determining at least one of;

whether at least one of said non-favored bidders places at least one bid, whether at least one of said non-favored bidders is leading, whether at least one of said non-favored bidders enters said bid within a predetermined time period, whether said bid of at least of said non-favored bidders meets said bid of said favored bidder, whether said bid of at least one of said non-favored bidders surpasses at least one of said bid of said favored bidder and a predetermined amount, and whether said bid of said favored bidder is less than a reserve price.

20. The machine readable medium of claim 9, wherein said non-favored bidder is included in a plurality of non-favored bidders and further comprising:

determining, for each bidder in the plurality of non-favored bidders a relative score;

assigning a rank to each of said non-favored bidders and said favored bidder based on said relative score; and

designating said market position for each of said non-favored bidders and said favored bidder based on said rank.

21. The machine readable medium of claim 9, wherein said determining a market position comprises designating said bid of said favored bidder as said relative score of said favored bidder.

22. The machine readable medium of claim 9, wherein said displaying comprises showing said market position in at least one of a textual representation and a graphical representation.

12. A system for promoting competitive bidding in an online auction having a non-favored bidder, a favored bidder, and a sponsor, said system comprising:

at least one processor configured to;

receive a first bid from said non-favored bidder;

receive a second bid from said favored bidder;

determine a market position for said non-favored bidder in relation to said favored bidder, at least in part by determining a relative spread using the second bid;

display feedback information to at least one of said non-favored bidder and said favored bidder, said feedback information comprising said market position;

receive a third bid from at least one of the non-favored and favored bidder; and

update the market position for at least one of said non-favored bidder and said favored bidder using the received third bid.

13. A computer system operatively connected to a network comprising:

means for receiving a first bid from a non-favored bidder and a second bid from a favored bidder over said network;

means for determining a market position for said non-favored bidder in relation to said favored bidder, at least in part by determining a relative spread using the second bid;

means for transmitting feedback information, said feedback information comprising said market position and at least one of a textual representation and a graphical representation;

means for receiving a third bid from at least one of the non-favored and favored bidder; and

means for updating the market position for at least one of said non-favored bidder and said favored bidder using the received third bid.

14. The computer system of claim 13, wherein said feedback information comprises a respective rank of said non-favored bidder in relation to said favored bidder.

15. The computer system of claim 13, wherein said feedback information comprises a reserve price, said reserve price representing a minimum price at which said sponsor is willing to award a contract.

16. The computer system of claim 13, wherein said feedback information comprises a dynamic reserve price, said dynamic reserve price representing a price at which said sponsor is willing to award a contract to said bidder other then said favored bidder.

17. The computer system of claim 13, further comprising:

means for receiving a new bid from said bidder and said favored bidder; and

means for updating said market position based on said new bid.