Dynamic Bid Increment Adjustment for Online Auctions
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Solution Overview
Problem
Online auctions face challenges in optimizing bid increments to achieve higher transaction prices in a shorter time, as existing systems rely on static or default increments that do not adapt to real-time auction activity, leading to reduced bidder interest and prolonged auction durations.
Innovation Solution
A system and method for dynamically determining bid increments based on real-time auction activity, using a bid increment determination sub-system that monitors and adjusts bid increments in response to events and conditions such as bidder participation, bidding velocity, and time remaining, allowing for optimal pricing and auction duration.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If static or default bid increments are used, then the auction system is simple to operate, but the transaction price cannot be optimized and auction duration is prolonged
Solution Approach 1:
The patent implements dynamic bid increment determination by continuously monitoring auction activity metrics (number of bids, bidding velocity, time remaining) and adjusting the bid increment accordingly. The system transitions from static to dynamic increment values based on real-time auction conditions, optimizing both transaction price and auction duration without requiring complex manual intervention.
Solution Approach 2:
The system incorporates feedback loops where auction activity data is continuously collected, analyzed, and used to adjust bid increment values. The monitoring sub-system provides feedback on bidding patterns, and this feedback drives automatic adjustments to optimize auction outcomes, creating a self-regulating system that balances simplicity with effectiveness.
2Loss of time
If dynamic bid increment adjustment is implemented, then transaction prices are optimized and auction duration is reduced, but the system complexity increases
Solution Approach 1:
The system dynamically adjusts bid increments based on real-time auction metrics, enabling the auction to adapt to changing participant behavior. This dynamic approach accelerates price convergence and reduces unnecessary auction time by increasing increments when bidding is active and decreasing them when activity slows, thereby optimizing auction duration.
Solution Approach 2:
The bid increment determination system operates autonomously by automatically monitoring auction activity and adjusting increments without human intervention. The system serves itself by using its own collected data to make real-time adjustments, eliminating the need for external manual control while reducing auction duration efficiently.
3Productivity
If dynamic bid increment adjustment is implemented, then transaction prices are optimized and auction duration is reduced, but the system complexity increases
Solution Approach 1:
The system employs dynamic bid increment values that automatically adjust based on monitored auction activity. By making the increment values variable rather than fixed, the system optimizes auction efficiency through real-time adaptation to bidding patterns, achieving higher transaction prices in shorter times despite increased computational requirements.
Solution Approach 2:
The system uses feedback from auction activity monitoring to continuously optimize bid increment values. The monitoring sub-system tracks bidding behavior and feeds this information back to the determination logic, which adjusts increments to maintain optimal auction pace, thereby improving overall efficiency through data-driven adjustments.
4Ease of operation
If static bid increments are used, then the system is easier to implement, but bidder interest decreases and auction duration increases
Solution Approach 1:
The system transitions from static to dynamic bid increment management, where increments automatically adjust based on auction activity levels. This maintains ease of operation through automation while preventing auction duration extension by adapting increments to real-time bidding patterns, thereby sustaining bidder interest without manual intervention.
Solution Approach 2:
The bid increment management system serves itself by automatically monitoring auction activity and adjusting increments without requiring external input. This self-service approach maintains operational simplicity while optimizing auction duration through autonomous adaptation to bidding dynamics, preventing both bidder disengagement and unnecessary time extension.
Data Source
AI summary
A dynamic auction webpage for an online auction is presented on a user device. The dynamic auction includes a bidder interface that enables a user to submit a bid on an asset associated with the dynamic auction webpage. The bidder interface displays one or more bidding parameters associated with a subsequent bid to be submitted via the bidding interface. The one or more bidding parameters is one or more of: a current bid, a next bid, or a bid increment. While the online auction is being conducted, an indicator of interest in the online auction is determined based at least in part on activity data associated with the online auction, including a page view count maintained by the network system for the dynamic auction webpage. At least one of the one or more bidding parameters is determined based on the indicator of interest and the bidder interface is dynamically updated.