System and method

Abstract

A system and method providing for communication and reolution of utility functions between participants, wherein the utility function is evaluated based on local information at the recipient to determine a cost value thereof. A user interface having express representation of both information elements, and associated reliability of the information. An automated system for optimally conveying information based on relevance and reliability.

Description

BACKGROUND OF THE INVENTION[0001]A number of fields of endeavor are relevant to the present invention, and exemplary prior art, incorporated herein by reference, are disclosed below. The references disclosed provide a skilled artisan with embodiments of elements of the present invention, and the teachings therein may be combined and subcombined in various manners in accordance with the present teachings. The topical headings are advisory only, and are not intended to limit the applicability of any reference. While some embodiments are discussed as being preferred, it should be understood that all embodiments discussed, in any portion of this documents, whether stated as having advantages or not, form a part of the invention and may be combined and / or subcombined in a consistent manner in accordance with the teachings hereof.[0002]Internet[0003]The Internet is structured such various networks are interconnected, with communications effected by addressed packets conforming to a common...

AI Technical Summary

Problems solved by technology

Statistically, some proportion of the packets are extraordinarily delayed, or simply lost.

In the even that the network nears capacity or is otherwise subject to limiting constraint, the incidence of delayed or lost packets increases, thereby increasing requests for retransmission and retransmission.

Therefore, as the network approaches available bandwidth, the load increases, ultimately leading to failure.

End-to-end quality of service guarantees, however, may exceed the cost of circuit switched technologies, such as dialup modems, especially where the high quality needs are intermittent.

The browser typically does not provide intelligence.

These local servers, applications and applets are non-standard, and thus require special software to be available locally for execution.

One particular problem with market-based commerce is that both seller optimization and market efficiency depend on the fact that representative participants of a preselected class are invited to participate, and are able to promptly communicate, on a relevant timescale, in order to accurately value the goods or services and make an offer.

Thus, attempts at ascertaining a market price for non-commodity goods can be subject to substantial inefficiencies, which reduce any potential gains by market pricing.

Further, while market pricing might be considered “fair”, it also imposes an element of risk, reducing the ability of parties to predict future pricing and revenues.

Addressing this risk may also reduce efficiency of a market-based system.

In the uniform price and second price schemes, the bidder is encourages to disclose the actual private value to the bidder of the good or service, since at any price below this amount, there is an excess gain to the buyer, whereas by withholding this amount the bid may be unsuccessful, resulting in a loss of the presumably desirable opportunity.

If the rules discourage high valuations of the goods or services, or discourage participation by an important set of potential bidders, then the rules are not optimum.

It is noted that these rules typically seek to allocate to the seller a portion of the economic benefit that would normally inure to the buyer, creating an economic inefficiency.

However, since the auction is to benefit the seller, not society as a whole, this potential inefficiency is tolerated.

It remains a subject of academic debate as to which auction rules are most optimum in given circumstances; however, in practice, simplicity of implementation may be a paramount concern, and simple auctions may result in highest revenues; complex auctions, while theoretically more optimal, may discourage bidders from participating or from applying their true and full private valuation in the auction process.

In fact, experience with initial public offerings (IPOs) of stock through various means has demonstrated that by making stock available directly to all classes of potential purchasers, latent demand for a new issue is extinguished, and the stock price is likely to decline after issuance, resulting in an IPO which is characterized as “unsuccessful”.

This potential for post IPO decline tempers even initial interest in the issue, resulting in a paradoxical decline in revenues from the vehicle.

This inefficiency manifests itself by either withholding goods from the market or placing the goods in the wrong hands.

Therefore, if post-auction trading is permitted, the seller will not benefit from these later gains, and the seller will obtain sub optimal revenues.

These studies, however, typically do not consider transaction costs and internal inefficiencies of the resellers, as well as the possibility of multiple classes of purchasers, or even multiple channels of distribution, which may be subject to varying controls or restrictions, and thus in a real market, such theoretical optimal allocation is unlikely.

In fact, in real markets the transaction costs involved in transfer of ownership are of

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