System and method for an 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 computer system for conducting a clock auction of one or more types of items among a plurality of users, said system comprising:
 means for transmitting first prices for one or more types of items;   means for receiving one or more bids, said bids indicating quantities of items that a user wishes to transact based on said first prices;   means for determining, based on received bids, whether the auction should continue or terminate;   means for transmitting second prices for one or more types of items, responsive to a determination to continue the auction, said second prices differing from the first prices for at least one type of item;   means for receiving further bids, said further bids indicating intra-round prices, each said intra-round price situated between the first price and the second price for a type of item, each said further bid indicating a quantity of items that a user wishes to transact at prices above the intra-round price and a quantity of items that the user wishes to transact at prices below the intra-round price;   means for testing whether the received further bids satisfy one or more constraints and applying only those further bids that satisfy the constraints; and   means for determining, based on applied further bids, whether the auction should continue or terminate.   
     
     
         2 . The computer system of  claim 1 , wherein the one or more constraints tested by the means for testing include an activity rule that limits current bidding based on past bidding. 
     
     
         3 . The computer system of  claim 2 , wherein the activity rule is a requirement that a sum of quantities indicated by one or more current bids is no greater than a sum of quantities indicated by one or more prior bids. 
     
     
         4 . The computer system of  claim 1  further including second determining means for determining final prices for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         5 . The computer system of  claim 4 , wherein a final price is determined to be the intra-round price nearest the first price such that an aggregate quantity of items bid is no greater than an available quantity. 
     
     
         6 . The computer system of  claim 1  further including third determining means for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         7 . The computer system of  claim 4  further including third determining means for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         8 . The computer system of  claim 7 , wherein a user's final quantity is determined to be a quantity that the user wishes to transact at a final price, based on an applied further bid. 
     
     
         9 . The computer system of  claim 1  further including fourth determining means for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         10 . The computer system of  claim 8  further including fourth determining means for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         11 . The computer system of  claim 10 , wherein a user's final payment is determined to be a dot product of final quantities and final prices. 
     
     
         12 . The computer system of  claim 2  further including second determining means for determining final prices for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         13 . The computer system of  claim 3  further including second determining means for determining final prices for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         14 . The computer system of  claim 2  further including third determining means for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         15 . The computer system of  claim 3  further including third determining means for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         16 . The computer system of  claim 2  further including fourth determining means for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         17 . The computer system of  claim 3  further including fourth determining means for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         18 . A method for conducting a clock auction of one or more types of items among a plurality of users, said method implemented in a computer system comprising a plurality of computers including a first computer and at least one other computer which is located remotely from the first computer and interconnected by a communication system, said method comprising:
 transmitting first prices for one or more types of items from said first computer to said communication system;   receiving one or more bids at said first computer from said communication system, said bids indicating quantities of items that a user wishes to transact based on said first prices;   determining, based on received bids, whether the auction should continue or terminate;   transmitting second prices for one or more types of items from said first computer, responsive to a determination to continue the auction, said second prices differing from the first prices for at least one type of item;   receiving further bids at said first computer, said further bids indicating intra-round prices, each said intra-round price situated between the first price and the second price for a type of item, each said further bid indicating a quantity of items that a user wishes to transact at prices above the intra-round price and a quantity of items that the user wishes to transact at prices below the intra-round price;   testing whether the received further bids satisfy one or more constraints and applying only those further bids that satisfy the constraints; and   determining, based on applied further bids, whether the auction should continue or terminate.   
     
     
         19 . The method of  claim 18 , wherein the one or more constraints against which the received further bids are tested include an activity rule that limits current bidding based on past bidding. 
     
     
         20 . The method of  claim 19 , wherein the activity rule is a requirement that a sum of quantities indicated by one or more current bids is no greater than a sum of quantities indicated by one or more prior bids. 
     
     
         21 . The method of  claim 18  further including a second determining for determining final prices for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         22 . The method of  claim 21 , wherein a final price is determined to be the intra-round price nearest the first price such that an aggregate quantity of items bid is no greater than an available quantity. 
     
     
         23 . The method of  claim 18  further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         24 . The method of  claim 21  further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         25 . The method of  claim 24 , wherein a user's final quantity is determined to be a quantity that the user wishes to transact at a final price, based on an applied further bid. 
     
     
         26 . The method of  claim 18  further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         27 . The method of  claim 25  further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         28 . The method of  claim 27 , wherein a user's final payment is determined to be a dot product of final quantities and final prices. 
     
     
         29 . The method of  claim 19  further including second determining for determining final prices for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         30 . The method of  claim 20  further including second determining for determining final prices for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         31 . The method of  claim 19  further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         32 . The method of  claim 20  further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         33 . The method of  claim 19  further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         34 . The method of  claim 20  further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         35 . A computer readable medium storing a sequence of instructions which, when executed on a system comprising a plurality of computers including a first computer and at least one other computer which is located remotely from the first computer and interconnected by a communication system implements a method for conducting a clock auction of one or more types of items among a plurality of users, said method comprising:
 transmitting first prices for one or more types of items from said first computer to said communication system;   receiving one or more bids at said first computer from said communication system, said bids indicating quantities of items that a user wishes to transact based on said first prices;   determining, based on received bids, whether the auction should continue or terminate;   transmitting second prices for one or more types of items from said first computer, responsive to a determination to continue the auction, said second prices differing from the first prices for at least one type of item;   receiving further bids at said first computer, said further bids indicating intra-round prices, each said intra-round price situated between the first price and the second price for a type of item, each said further bid indicating a quantity of items that a user wishes to transact at prices above the intra-round price and a quantity of items that the user wishes to transact at prices below the intra-round price;   testing whether the received further bids satisfy one or more constraints and applying only those further bids that satisfy the constraints; and   determining, based on applied further bids, whether the auction should continue or terminate.   
     
     
         36 . The medium of  claim 35 , wherein the one or more constraints against which the received further bids are tested includes an activity rule that limits current bidding based on past bidding. 
     
     
         37 . The medium of  claim 36 , wherein the activity rule is a requirement that a sum of quantities indicated by one or more current bids is no greater than a sum of quantities indicated by one or more prior bids. 
     
     
         38 . The medium of  claim 35  further including a second determining for determining final prices for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         39 . The medium of  claim 38 , wherein a final price is determined to be the intra-round price nearest the first price such that an aggregate quantity of items bid is no greater than an available quantity. 
     
     
         40 . The medium of  claim 35  further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         41 . The medium of  claim 38  further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         42 . The medium of  claim 41 , wherein a user's final quantity is determined to be a quantity that the user wishes to transact at a final price, based on an applied further bid. 
     
     
         43 . The medium of  claim 35  further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         44 . The medium of  claim 42  further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         45 . The medium of  claim 44 , wherein a user's final payment is determined to be a dot product of final quantities and final prices. 
     
     
         46 . The medium of  claim 36  further including second determining for determining final prices for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         47 . The medium of  claim 37  further including second determining for determining final prices for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         48 . The medium of  claim 36  further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         49 . The medium of  claim 37  further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         50 . The medium of  claim 36  further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction. 
     
     
         51 . The medium of  claim 37  further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction.