Network Auction Evaluation System for Profit Maximization
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Solution Overview
Problem
Traditional auction methods are limited in maximizing profit for auction initiators, as they primarily focus on the highest or lowest bidder, neglecting other essential assets and conditions, which restricts participation and efficiency, especially in reverse auctions and lease auctions where bid prices and schedules are not effectively evaluated.
Innovation Solution
An optimum auction method using a network that evaluates both bid prices and additional particulars set by the auction initiator, allowing for a comprehensive assessment of participants to select the bidder closest to the initiator's intentions and preferences, even if they offer superior conditions despite higher prices, and enables flexible participation in lease auctions by considering overlapping schedules and combined bids.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If the auction selection method simply compares bid prices to select the highest or lowest bidder, then the selection process is simple and quick, but the auction initiator cannot maximize profit and loses opportunities for additional advantages
Solution Approach 1:
The patent changes the evaluation parameters from单一的bid price to multiple parameters including bid price, additional conditions, options, and other evaluation criteria. This allows the system to comprehensively assess bidders and select those who can maximize the auction initiator's profit, not just those with extreme prices.
Solution Approach 2:
The patent creates a composite evaluation system that combines multiple assessment dimensions (price, conditions, options, preferences) into a unified bidder evaluation framework. This composite approach enables holistic comparison of bidders beyond simple price comparison.
2Device complexity
If the auction evaluates only bid prices, then the evaluation process is simple, but the participation range is unnecessarily restrictive and competition efficiency is reduced
Solution Approach 1:
The patent segments the bidder evaluation into multiple independent components: bid price evaluation, additional conditions evaluation, options evaluation, and preference matching. This segmentation allows each aspect to be evaluated separately and then integrated, making the comprehensive evaluation manageable and scalable.
Solution Approach 2:
The patent creates a universal evaluation framework that can handle various auction types (reverse auctions, lease auctions, etc.) and multiple evaluation criteria through a single multi-functional system. This framework accommodates diverse bidder proposals with different combinations of price, conditions, and options.
3Object-generated harmful factors
If the auction selects the highest price bidder in lease auctions, then the immediate profit is maximized, but bidders with better conditions or schedules are excluded even if they offer lower prices
Solution Approach 1:
The patent performs preliminary evaluation of multiple factors (price, conditions, schedule compatibility, options) before making the final selection decision. This preliminary comprehensive assessment ensures that the selected bidder not only offers good price but also meets other important criteria, preventing future inefficiencies.
Solution Approach 2:
The patent incorporates feedback mechanisms where the auction initiator can specify preferences, required conditions, and evaluation weights. The system uses this feedback to adjust the evaluation process and select bidders who best match the initiator's needs, improving both short-term and long-term outcomes.
Data Source
AI summary
An optimum auction method using a network is disclosed. Especially, being different from a typical auction method for simply evaluating a personally proposed bod price, the optimum auction method evaluates various evaluation particulars for the auction and evaluation methods in overall, thereby selecting an optimum bidder who is close to an intention or taste of an auction initiator or able to maximize a profit even though the selected optimum bidder does not propose the highest or the lowest bid price. Accordingly, it is also possible to broaden a range of participation and improve efficiency on the auction. Also, there are various types of the optimum auction method including a reverse auction, a lease auction and a reverse lease auction which can proceed with various trading methods by maximizing the profit of the auction initiator.