Combinatorial Auction Solver Using Exchange Description Data

The patent segments the complex combinatorial bidding problem into multiple independent processing dimensions by introducing orthogonal features (reserve price, non-price attributes, adjustments, objectives, constraints) that can be evaluated separately. This allows the solver to handle each feature independently rather than processing the entire bid complexity simultaneously, making the winner determination computationally tractable while preserving economic efficiency.

The patent transforms the intractable combinatorial optimization problem into a tractable one by changing the parameter representation of bids. Instead of treating bids as monolithic complex objects, the system decomposes them into standardized parameters (price, attributes, constraints) that can be processed efficiently by the solver, maintaining the ability to achieve best economic efficiency while reducing computational burden.

The patent applies preliminary action by pre-structuring bid data into standardized formats with predefined features (reserve price, non-price attributes, adjustments, objectives, constraints) before submission to the solver. This preprocessing organization allows the solver to quickly process bids without performing complex exploratory analysis, thereby reducing processing time while maintaining optimal economic outcomes for seller revenue and buyer cost.

The patent changes the parameter structure of bid processing from unstructured complex optimization to structured parameter evaluation. By representing bids in terms of discrete, evaluable parameters with clear mathematical relationships, the solver can efficiently compute optimal allocations without exhaustive search, significantly reducing processing time while achieving economic optimization goals.