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.

Description

PRIORITY CLAIM[0001]This application is a continuation of pending application Ser. No. 12 / 987,817 filed Jan. 10, 2011, which is a continuation of application Ser. No. 12 / 334,955 filed Dec. 15, 2008, now U.S. Pat. No. 7,870,050; which is a continuation of application Ser. No. 11 / 622,660, filed Jan. 12, 2007, now U.S. Pat. No. 7,467,111; which is a continuation of application Ser. No. 09 / 898,483, filed Jul. 5, 2001, now U.S. Pat. No. 7,165,046; which is a continuation-in-part of application Ser. No. 09 / 573,007, filed May 18, 2000, now U.S. Pat. No. 7,062,461; This application claims the benefit of the filing date, pursuant to the provisions of 35 U.S.C. §119(e), of provisional application Ser. Nos. 60 / 216,338, filed Jul. 5, 2000; 60 / 229,600, filed Sep. 5, 2000; 60 / 293,510, filed on May 29, 2001; 60 / 294,246, filed on May 31, 2001; and 60 / 134,666, filed May 18, 1999. The disclosures of the foregoing applications are incorporated herein by this reference.FIELD OF THE INVENTION[0002]The p...

AI Technical Summary

Benefits of technology

The present invention is a computerized system and method for conducting a dynamic multi-unit auction. The system allows bids to be submitted and the price to be paid or received with little regard to other bids. Participants are provided with information about their competitors' bids as the auction progresses, and the system ensures that high values are always maintained with confidentiality. The system makes it efficient for a seller or buyer to auction multiple types of goods or services, and can handle auction items with complex possibilities for substitution. The system allows for quick and reliable conduct of the auction, even if the bidders are not physically present. The amount of information transmitted to or displayed to the bidders can be carefully controlled, and the auctioneer may choose to disclose or not disclose certain biding information.

Problems solved by technology

However, standard ascending-bid formats—such as the design used by the Federal Communications Commission for auctioning radio communications spectrum—have the disadvantage that they do not generally lead to outcomes which are efficient in the sense of assigning items to the bidders who value them the most.

Most ascending-bid auction formats have the unfortunate property that identical items sell at the uniform price reached at the end of the auction.

This has clear negative implications both for efficiency and for revenues.

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