Method and apparatus for configurably adjusting a bid in an online auction

Abstract

A method and apparatus for configuring and entering bids in an auction is disclosed. The method includes displaying a bid adjustment mechanism configuration interfaced to a bidder. Thereafter, a bid adjustment value for the bid adjustment mechanism is set using the configuration interface. Following the setting step, upon actuation of the bid adjustment mechanism, a bid is adjusted by the bid adjustment value previously set using the configuration interface.

Description

REFERENCE TO RELATED APPLICATION [0001] This application is a continuation-in-part of copending U.S. patent application Ser. No. 09 / 252,790, entitled “Method and System for Conducting Electronic Auctions”, filed Feb. 19, 1999, and in the names of Marc Alaia, Dave Becker, Tony Bernard, Daniel Heckmann, Sam Kinney, Glen Meakem, Vincent Rago, Jason Reneau, Fred Roberts, Bill Rupp and Rob Stevens, assigned to the assignee of the present Application, FreeMarkets, Inc. The entirety of this earlier filed co-pending patent application is hereby expressly incorporated herein by reference.BACKGROUND OF THE INVENTION [0002] 1. Field of the Invention [0003] The disclosed invention relates generally to conducting electronic auctions, and in particular to a method of adjusting bids in electronic auctions. [0004] 2. Description of Background [0005] Procurement of goods and services has traditionally involved high transaction costs, especially information search costs. The introduction of electroni...

AI Technical Summary

Benefits of technology

[0023] Thus, the present invention provides a method and apparatus that beneficially encourages bidders to place bids. The present invention also provides a method and apparatus to actively participate in an electronic auction by submitting adjusted bids.

Problems solved by technology

Procurement of goods and services has traditionally involved high transaction costs, especially information search costs.

Although these first electronic catalogs greatly reduced the information search costs associated with procurement, customers were disadvantageously “locked in” to one supplier at each electronic catalog.

Customers were thus unable to compare a number of competing products in a single catalog.

However, many of these catalog systems are biased toward the supplier offering the electronic catalog.

Therefore, third-party “market makers” have developed unbiased markets for many standard products and services.

The catalog and buyer-bidding auction models have limitations and do not work in every situation.

For example, if a buyer requires a custom product, it is not possible for suppliers to publish set prices for a catalog market.

Therefore, when a buyer requires a custom or hard-to-find product, pricing for that product typically will not be found in a catalog.

Likewise, it is difficult to specify a custom product and identify buyers who might use that custom product for a buyer-bidding auction.

There are fewer suppliers and no standard product and pricing information available for the buyer of custom industrial products.

The search is slow and random, and typically relies heavily on personal relationships.

The costs associated with locating vendors, comparing prices, and negotiating a deal are therefore large.

The cost of switching suppliers is also very large, which means that an incumbent supplier's quoted price is most likely not the lowest price he could offer because the incumbent supplier knows the buyer would face switching costs to use another supplier.

As a consequence, new suppliers have a difficult time entering the market.

If the process of submitting a bid to the electronic auction is difficult or cumbersome, the bidder may be less likely to make a bid.

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