Bidder System For Efficient Dynamic Multi-Unit Auction

Abstract

The present invention implements an auction in which multiple types of goods may be auctioned in a dynamic process. In a preferred embodiment, the present invention is a system and method for computer implemented dynamic multi-unit auction in which the price paid or received by bidders tends to be independent of their own bids, in which participants may be provided with information concerning their competitors' bids as the auction progresses, and in which the confidentiality of high values may be maintained. Participants' quantities bid at a given time may be restricted to be less than or equal to the quantities bid at an earlier time. These features provide the advantage of improving economic efficiency of the auction design over the prior art.

1 . A system useful for enabling a bidder to submit bids in a clock auction of at least one type of item, said system comprising a computer, one or more user interfaces, and a network interface, said system comprising:
 means for conveying first prices for one or more types of items to the bidder via a user interface;   means for receiving one or more bids from the bidder via a user interface, said bids indicating quantities of items that the bidder wishes to transact;   means for communicating received bids via the network interface, said communicating of received bids occurring subsequently to the conveying of said first prices;   means for conveying second prices for one or more types of items to the bidder via a user interface, said second prices differing from the first prices for at least one type of item, said conveying of second prices occurring subsequently to the communicating of received bids;   means for receiving one or more further bids from the bidder via a user interface, at least one of said further bids indicating an intra-round price, the intra-round price situated between the first price and the second price of a type of item, the at least one of said further bids indicating a quantity of items that the bidder wishes to transact at prices above the intra-round price and a quantity of items that the bidder wishes to transact at prices below the intra-round price; and   means for communicating received further bids via the network interface, said communicating of received further bids occurring subsequently to the conveying of second prices.   
     
     
         2 . The system of  claim 1  further comprising means for applying one or more constraints to determine whether the received bids satisfy the applied constraints. 
     
     
         3 . The system of  claim 2  wherein received bids are communicated only for received bids that are determined to satisfy the applied constraints. 
     
     
         4 . The system of  claim 1  further comprising means for applying one or more constraints to determine whether the received further bids satisfy the applied constraints. 
     
     
         5 . The system of  claim 4  wherein received further bids are communicated only for received further bids that are determined to satisfy the applied constraints. 
     
     
         6 . The system of  claim 4  wherein one of the applied constraints is an activity rule that limits current bidding based on past bidding. 
     
     
         7 . The system of  claim 6  wherein received further bids are communicated only for received further bids that are determined to satisfy the applied constraints. 
     
     
         8 . The system of  claim 6  wherein the activity rule is a requirement that a sum of quantities indicated by one or more current received further bids is no greater than a sum of quantities indicated by one or more prior received further bids. 
     
     
         9 . The system of  claim 8  wherein received further bids are communicated only for received further bids that are determined to satisfy the applied constraints. 
     
     
         10 . The system of  claim 1  wherein an intra-round price is indicated by a percentage parameter indicating a percentage of a distance from a first price to a second price for one or more types of items. 
     
     
         11 . The system of  claim 4  wherein an intra-round price is indicated by a percentage parameter indicating a percentage of a distance from a first price to a second price for one or more types of items. 
     
     
         12 . The system of  claim 8  wherein an intra-round price is indicated by a percentage parameter indicating a percentage of a distance from a first price to a second price for one or more types of items. 
     
     
         13 . A method enabling a bidder to submit bids in a clock auction of at least one type of item, said method implemented in a system comprising a first computer with one or more user interfaces and a network interface, said system further including at least one other computer which is located remotely from the first computer and interconnected by a communication system, said method comprising:
 conveying first prices for one or more types of items to the bidder via a user interface of said first computer;   receiving one or more bids from the bidder via a user interface of said first computer, said bids indicating quantities of items that the bidder wishes to transact;   communicating received bids via the network interface of said first computer, said communicating of received bids occurring subsequently to the conveying of said first prices;   conveying second prices for one or more types of items to the bidder via a user interface of said first computer, said second prices differing from the first prices for at least one type of item, said conveying of second prices occurring subsequently to the communicating of received bids;   receiving one or more further bids from the bidder via a user interface of said first computer, at least one of said further bids indicating an intra-round price, the intra-round price situated between the first price and the second price of a type of item, the at least one of said further bids indicating a quantity of items that the bidder wishes to transact at prices above the intra-round price and a quantity of items that the bidder wishes to transact at prices below the intra-round price; and   communicating received further bids via the network interface of said first computer, said communicating of received further bids occurring subsequently to the conveying of second prices.   
     
     
         14 . The method of  claim 13  further comprising applying one or more constraints to determine whether the received bids satisfy the applied constraints. 
     
     
         15 . The method of  claim 14  wherein received bids are communicated only for received bids that are determined to satisfy the applied constraints. 
     
     
         16 . The method of  claim 13  further comprising applying one or more constraints to determine whether the received further bids satisfy the applied constraints. 
     
     
         17 . The method of  claim 16  wherein received further bids are communicated only for received further bids that are determined to satisfy the applied constraints. 
     
     
         18 . The method of  claim 16  wherein one of the applied constraints is an activity rule that limits current bidding based on past bidding. 
     
     
         19 . The method of  claim 18  wherein received further bids are communicated only for received further bids that are determined to satisfy the applied constraints. 
     
     
         20 . The method of  claim 18  wherein the activity rule is a requirement that a sum of quantities indicated by one or more current received further bids is no greater than a sum of quantities indicated by one or more prior received further bids. 
     
     
         21 . The method of  claim 19  wherein received further bids are communicated only for received further bids that are determined to satisfy the applied constraints. 
     
     
         22 . The method of  claim 13  wherein an intra-round price is indicated by a percentage parameter indicating a percentage of a distance from a first price to a second price for one or more types of items. 
     
     
         23 . The method of  claim 16  wherein an intra-round price is indicated by a percentage parameter indicating a percentage of a distance from a first price to a second price for one or more types of items. 
     
     
         24 . The method of  claim 20  wherein an intra-round price is indicated by a percentage parameter indicating a percentage of a distance from a first price to a second price for one or more types of items. 
     
     
         25 . A computer readable medium storing a sequence of instructions which, when executed implements a method enabling a bidder to submit bids in a clock auction of at least one type of item, said method implemented in a system comprising a first computer with one or more user interfaces and a network interface, said system further including at least one other computer which is located remotely from the first computer and interconnected by a communication system, said method comprising:
 conveying first prices for one or more types of items to the bidder via a user interface of said first computer;   receiving one or more bids from the bidder via a user interface of said first computer, said bids indicating quantities of items that the bidder wishes to transact;   communicating received bids via the network interface of said first computer, said communicating of received bids occurring subsequently to the conveying of said first prices;   conveying second prices for one or more types of items to the bidder via a user interface of said first computer, said second prices differing from the first prices for at least one type of item, said conveying of second prices occurring subsequently to the communicating of received bids;   receiving one or more further bids from the bidder via a user interface of said first computer, at least one of said further bids indicating an intra-round price, the intra-round price situated between the first price and the second price of a type of item, the at least one of said further bids indicating a quantity of items that the bidder wishes to transact at prices above the intra-round price and a quantity of items that the bidder wishes to transact at prices below the intra-round price; and   communicating received further bids via the network interface of said first computer, said communicating of received further bids occurring subsequently to the conveying of second prices.   
     
     
         26 . The medium of  claim 25  further comprising applying one or more constraints to determine whether the received bids satisfy the applied constraints. 
     
     
         27 . The medium of  claim 26  wherein received bids are communicated only for received bids that are determined to satisfy the applied constraints. 
     
     
         28 . The medium of  claim 25  further comprising applying one or more constraints to determine whether the received further bids satisfy the applied constraints. 
     
     
         29 . The medium of  claim 28  wherein received further bids are communicated only for received further bids that are determined to satisfy the applied constraints. 
     
     
         30 . The medium of  claim 28  wherein one of the applied constraints is an activity rule that limits current bidding based on past bidding. 
     
     
         31 . The medium of  claim 28  wherein received further bids are communicated only for received further bids that are determined to satisfy the applied constraints. 
     
     
         32 . The medium of  claim 30  wherein the activity rule is a requirement that a sum of quantities indicated by one or more current received further bids is no greater than a sum of quantities indicated by one or more prior received further bids. 
     
     
         33 . The medium of  claim 31  wherein received further bids are communicated only for received further bids that are determined to satisfy the applied constraints. 
     
     
         34 . The medium of  claim 25  wherein an intra-round price is indicated by a percentage parameter indicating a percentage of a distance from a first price to a second price for one or more types of items. 
     
     
         35 . The medium of  claim 28  wherein an intra-round price is indicated by a percentage parameter indicating a percentage of a distance from a first price to a second price for one or more types of items. 
     
     
         36 . The medium of  claim 32  wherein an intra-round price is indicated by a percentage parameter indicating a percentage of a distance from a first price to a second price for one or more types of items.