Simulation auction for public offering

Abstract

The invention provides a method and system to estimate demand, pricing, allocation and aftermarket demand for public offerings via a simulation auction using collaborative forecasting. The simulation auction incorporates features to enhance participant knowledge about a particular company and its proposed auction. The simulation auction may be used to collect information regarding likely or equilibrium pricing of actual offerings, as well as to generate demand curve provides for different types of participants (e.g. retail and institutional investors).

1 . A computer implemented method for determining a simulated price and other market information corresponding to real-world securities in an offering comprising: 
 selecting a real world securities offering for a simulation auction and providing information about the selected offering to stimulate simulated bids for simulated securities corresponding to the selected offering;    offering to accept simulated bids from one or more potential participants via a communication network for the simulation auction of securities, said offering requiring payment of a bid participation fee that increases with the total value of the securities for which the simulated bid is made;    receiving simulated bids via a communication network from paying participants;    determining a simulated clearing price for the securities in the simulation auction based upon the received simulated bids; and    providing to participants making a bid an individual auction outcome indicating whether or not their bid was rejected or not and, if rejected, whether it was rejected as below the simulated clearing price determined in the simulation auction.    
   
   
       2 . The computer implemented method of  claim 1  further comprising: 
 determining the relative utility for the auction of bids submitted by participants in the simulation auction: and    providing to selected participants who provide bids with greater relative utility, additional information determined in the simulated auction, including at least the simulated clearing price.    
   
   
       3 . The computer implemented method of  claim 1  further comprising applying a participant filter to simulated bids received to filter out bidders or bids that are detrimental to the simulation.  
   
   
       4 . The computer implemented method of  claim 1  further comprising applying a participant filter to simulated bids received to filter out bidders or bids that are manipulative.  
   
   
       5 . The computer implemented method of  claim 1  further comprising applying a participant filter to simulated bids received to filter out bidders that are viewed as having a conflict of interest.  
   
   
       6 . The computer implemented method of  claim 1  wherein the step of determining a simulated clearing price comprises selecting from a library of auction methods one method and applying it to the simulated bids received.  
   
   
       7 . The computer implemented method of  claim 1  wherein the step of determining a simulated clearing price comprises selecting from a library of auction methods one method that tracks the method to be used in the real world securities offering and applying it to the simulated bids received.  
   
   
       8 . The computer implemented method of  claim 1  wherein the step of determining a simulated clearing price comprises selecting from a library of auction methods more than one auction method and applying each to the simulated bids received to develop an individual outcome for each simulated bid received and each of the more than one methods.  
   
   
       9 . The computer implemented method of  claim 1  further comprising a rewards module that evaluates bids based in part on proximity to the simulated clearing price and selecting certain bids as having earned a reward.  
   
   
       10 . The computer implemented method of  claim 1  further comprising a rewards module that evaluates bids based in part on proximity to the simulated clearing price and also based on the total value of the bid and selecting certain bids as having earned a reward.  
   
   
       11 . The computer implemented method of  claim 1  further comprising a rewards module that evaluates bids based in part on proximity to the simulated clearing price and also based on the total value of the bid and selecting certain bids as having earned a premium content report derived from the simulation bids received in the simulation auction.  
   
   
       12 . The computer implemented method of  claim 1  further comprising a rewards module that evaluates bids based in part on proximity to the simulated clearing price and also based on the total value of the bid and selecting certain bids as having earned a the right to participate in another simulation auction based on a credit from a prior bid participation fee.  
   
   
       13 . The computer implemented method of  claim 1  further comprising a rewards module that evaluates bids based in part on proximity to the simulated clearing price and also based on the total value of the bid and selecting certain bids based on weighting of these factors that is adjustable.  
   
   
       14 . The computer implemented method of  claim 1  further comprising comparing a participant's bid level to the price of a security in the selected real world securities offering and providing a purchase prompt to at least one participant who provided a bid that exceeds a clearing price in the selected a real world securities offering.  
   
   
       15 . A computer readable medium containing a computer program for determining a simulated price and other market information corresponding to real-world securities in an offering, the computer program comprising: 
 a code component defining a simulation auction and providing information about a selected real world securities offering corresponding to the simulation auction to stimulate simulated bids for simulated securities corresponding to the selected offering;    a code component for offering to accept simulated bids from one or more potential participants via a communication network for the simulation auction of securities, said offering requiring payment of a bid participation fee that increases with the total value of the securities for which the simulated bid is made;    a code component for receiving simulated bids via a communication network from participants;    a code component for determining a simulated clearing price for the securities in the simulation auction based upon the received simulated bids; and    a code component for providing to participants making a bid an individual auction outcome indicating whether or not their bid was rejected or not and, if rejected, whether it was rejected as below the simulated clearing price determined in the simulation auction.    
   
   
       16 . The computer readable medium of  claim 15  further comprising: 
 a code component for determining the relative utility for the auction of bids submitted by participants in the simulation auction: and    a code component for providing to selected participants who provide bids with greater relative utility, additional information determined in the simulated auction, including at least the simulated clearing price.    
   
   
       17 . The computer readable medium of  claim 15  further comprising a code component for evaluating bids and selecting certain bids as having earned a reward.  
   
   
       18 . A computer system for data processing with a computer program for determining a simulated price and other market information corresponding to real-world securities in an offering, the computer program comprising: 
 a code component defining a simulation auction and providing information about a selected real world securities offering corresponding to the simulation auction to stimulate simulated bids for simulated securities corresponding to the selected offering;    a code component for offering to accept simulated bids from one or more potential participants via a communication network for the simulation auction of securities, said offering requiring payment of a bid participation fee that increases with the total value of the securities for which the simulated bid is made;    a code component for receiving simulated bids via a communication network from participants;    a code component for determining a simulated clearing price for the securities in the simulation auction based upon the received simulated bids; and    a code component for providing to participants making a bid an individual auction outcome indicating whether or not their bid was rejected or not and, if rejected, whether it was rejected as below the simulated clearing price determined in the simulation auction.    
   
   
       19 . The system of  claim 18  further comprising: 
 a code component for determining the relative utility for the auction of bids submitted by participants in the simulation auction: and    a code component for providing to selected participants who provide bids with greater relative utility, additional information determined in the simulated auction, including at least the simulated clearing price.    
   
   
       20 . The computer system of  claim 18  further comprising a code component for evaluating bids and selecting certain bids as having earned a reward.