DE69707668T2 - METHOD AND SYSTEM FOR PROCESSING AND TRANSMITTING ELECTRONIC AUCTION INFORMATION - Google Patents

Abstract

A system and method for conducting a multi-person, interactive auction, in a variety of formats, without using a human auctioneer to conduct the auction. The system is preferably implemented in software. The system allows a group of bidders to interactively place bids over a computer or communications network. Those bids are recorded by the system and the bidders are updated with the current auction status information. When appropriate, the system closes the auction from further bidding and notifies the winning bidders and losers as to the auction outcome.

Description

Background of the Invention

1. Field of the Invention

The present invention relates to generally electronic commerce and in particular the conduct of a interactive auction about an electronic network.

2. Description the state of the art

Auctions usually have that Form a physical Gathering of bidders gathered in an auction house. Present auctions more valuable and collectable Goods, such as coins and antiques, and they are often preceded by a catalog of goods, of interested parties before the meeting in the auction house is circulated where the bidding is done by those physically people present. For auctions of more worldly items, such as for example household possessions, Estate- or property sales and the interested bidders simply appear on the agreed place at the agreed time and bid on the goods, in which they are interested.

At traditional auctions, at which requires the physical presence of a bidder disadvantageously required that the pending Lot of goods at the auction meeting point for a view by the bidder be available and then be taken away by the successful bidders. For many Kinds of goods would be it much easier for both the buyer for as well the seller, leave the inventory at its place of origin and purchased items at the end the auction to the successful bidders. Further physical auctions have the further disadvantage that at a only one item can be auctioned at a certain time. The Auctioneer requests bids from the room for a given lot, if but the highest If the bid has been accepted, the lot is closed and it goes to the next one Post. This temporal sequence of processing, combined with the for one assembled group ultimately available time is in limited, because a large number of items can not be used simultaneously with the same group of people during their limited time of availability be auctioned.

Some changes in bidding requirements have traditional auctions for Bidder made a little more convenient. Many auction companies allow it Bidders to submit their bids before the auction. Bidding beforehand can as a convenience for Bidders are sent by post, so that Bidders do not have to be physically present at the auction. Also the advent of telephone and fax machines allows bidders to Bids almost in real time during to submit the course of an auction. Liberate these technologies the bidder that he must be physically present at the auction, saving time and travel expenses saves. To put these technologies in the form of traditional auctions Representatives of the auction company receive telephone or Fax bids from their customers and make the auctioneer look at these new ones Commandments carefully. More like that Way can the representatives information about the current bidding items, such as the ongoing high bid, to the telephone bidders transferred back.

Bidding by post or fax suffers a remarkable disadvantage compared to personal Bidding or bidding by phone, because the bidder by post or fax has no opportunity in quick response to competitive bids, those from the hall or over answer the phone to raise a bid. Although bidding over the phone allows the bidder to avoid travel expenses and inconvenience, can traditional auctions also for many remote bidders are scheduled at inappropriate times. Because of the huge Number of items or Items sold at a typical auction, which into which thousands can go is it for a telephone bidder is also impractical for two to eight hours in to remain on the line to be present when the few items in which the bidder is interested come for sale. The Bids in which the telephone bidder is interested can be via the long-lasting traditional auction. Time zone differences further reduce the pleasure of offering telephone to a base international, potential customers.

All of these limitations and physical disadvantages Auctions, even if telephone or fax bidding is permitted, serve a great To discourage the number of bidders, which ultimately leads to fewer Selling prices for the economic damage of the auctioneer and Seller.

Electronic auctions listed below Electronic mail (e-mail) is used over the Internet, have brought a little innovation compared to more traditional ones physical options. For email auctions, an auction catalog is created electronically sent to those interested in bidding. Bidders then place their bids on individual items via email to an auctioneer. The auctioneer reads the email bids and puts them in a database for Bids. When the auction closes, the auctioneer notifies the bidding winners usually email and send the goods to the winning bidders.

Email auctions have several disadvantages. First, an auctioneer must personally prepare, read, and process the email bids. This requires considerable effort at a large auction. Second is it is difficult to keep bidders updated on the various items regarding the current high bids. Email has a lower traffic priority than most on most major public networks, such as the Internet, which means that bids may take a few hours to reach the auctioneer and bid updates to reach bidders. Third, the volume of bids when the auction is nearing may prevent the auctioneer from sending information about high bids to bidders due to the time it takes to read the email bids and enter them into the bids database is.

A recent innovation in email Auctions is the use of the World Wide Web (WWW) of the Internet system, to make descriptions of the goods known and the current ones to show high bids. This innovation creates the advantage, the necessity to eliminate that email Bid for the Update bidders. And since the WWW traffic has a much higher rank on the internet, the bidders suffer less from a time delay, when they see updated web pages. A personal auctioneer is involved in the manual processing of email bids, and this is necessary, he must Enter bids in the bidding database and the World Wide Web Pages with information about Update ongoing high bids.

Have sales companies other than auction houses also used the World Wide Web facilities of the Internet Make descriptions of their goods known and the goods at one offer given price for sale. These systems are automated and able to accept an order from a customer by you have the customer fill out an online order form. This job information is taken over by the system and into a database for Orders or given a booking system, which then processes the order. Such systems only sell goods at a fixed price and do not allow the auction of the goods or do not allow dynamic Setting their prices in an inactive manner in response Bids and other market conditions, such as offer and Demand.

Securities brokers have been around for years automated business systems for the Comparison or the appropriate compilation of buy and sell orders for securities used. For example, the New York Stock Exchange's DOTS (Direct Order Transmission System) and NASDAQ's SOES (Small Order Execution System) systems complete electronic comparisons of buyers and sellers. However, these systems do not work at auction. They bring only buy orders together with sell orders if the price criteria fit both sides of the trade.

A number of U.S. patents issued refer to different forms of electronic commerce. These patents fall into three broad categories: 1) patents, related to online networks, 2) patents related to electronic commerce via Refer to online networks and 3) patents relating to different Forms of securities (i.e., stocks and futures) trading via electronic Obtain funds. From the first of these groups, online networks, are U.S. Patents No. 5,406,475 entitled Data Processing Network Having a Plurality of Independent Subscribers, 5,235,680 entitled Apparatus And Method For Communicating Textual And Image Information Between A Host Computer And A Remote Display Terminal and 5,310,997 entitled Automated Order And Delivery Systems, representative for the State of the art. These patents describe systems of connections or Terminals that over Remote networks are connected to centralized computers. she however, do not describe the details of electronic commerce or especially auctions.

In the second group, electronic commerce related patents, describe U.S. Patent No. 5,285,383 to the Title Method For Carrying Out Transactions Using Electronic Title and 5,297,031 entitled Method And Apparatus For Order Management By Market Brokers various means of performing Transactions across electronic communication networks. They also describe different ones Means for displaying goods for sale to a variety of customers connected to a central computer of a computer network are, and various means of making simple sales where buyers buys an item at a given price. Reveal as a group these patents do not provide the means to perform electronic Auctions or any sales format other than a simple or "direct" sale.

A particular U.S. Patent 4,789,928 discloses a means of soliciting bids via an electronic network of bidders that are remote from the location of a live auction. In this system, bids from remote bidders are recorded, and at the same time the current high bid is transmitted from the physical auction room to the terminals or terminals of the remote bidders. However, this patent specification does not disclose or suggest the concept of an electronically conducted auction, including a means of automatically closing the auction under certain conditions and without the benefit of a personal live auctioneer. Furthermore, this patent also does not disclose or suggest a means of auctioning a plurality of items simultaneously; rather, the system described is strictly bound to the sequential processing of a physical auction. After all, this system only considers a simple auction with "highest bidder", in which a single lot goes only to a high bidder. This system cannot deal with a lot that is available for the auction, which includes a variety of items and where there is a large number of winning bidders that are sufficient to compare the large number of auctioned items.

In the third group of patents, related to electronic commerce describe the patents relating to securities trading, entitled US 4,412,287 Automated Stock Exchange and 5,077,665 entitled Distributed Matching system funds for future buyer to announce offers in order to achieve a given effect to buy special price, and for future sellers to announce offers, sell a certain effects at a special price. This automated systems keep lists of buy and sell orders. If an offer to buy an effect is placed at a price the bigger or is like an existing offer, these effects for a given Sell price, lead These systems automatically trade by bringing the buyer together the seller by. While the securities industry uses such terms as "auction" and "bid" and these patents Describe these terms, they actually refer to the Process of matching a group of bids from buyers a group of prices from sellers. There is no auction in the true sense of a multitude of bidders working simultaneously in one all bidders and sellers accessible Offer ways to achieve a high retail price. In fact, they close patented systems did not disclose the list of open purchase or sales offers, thereby reducing the seller's opportunity is kept open about the highest price for effects to make an effort. Instead, the market price of securities fluctuates over them automated systems are sold, up and down, depending on the last successful comparison or agreement between one open buy order and open sell order if both the buyer as well as the seller Have placed offers at suitable prices. In these systems there is no real way To compete and offer openly.

The present invention overcomes the drawbacks of the prior art listed above through creation of a method and system for conducting auctions and for lower listing of sales of goods over a Computer network without the help of a personal auctioneer. The system is for Bidders everywhere open and leading in the world too elevated Bidding activity. Complete and thorough Descriptions of each product offered can be placed on-line, because the cost of printing auction catalogs is in an electronic Medium are made minimal. An auction within the system according to the invention can be done for a while with the problems of inconvenient planning and time zone differences are mitigated. A variety of auction formats can be found within of the system according to the invention depending on the type of goods under sale. And finally, it can The method and system of the present invention are automatic carried out who the without the need for a personal auctioneer, being the possibility is created that a large number of objects is continuously auctioned or auctioned.

NL 9300366A describes a computer system for the execution from auctions over a computer network with means for entering information in a computer network, each item of a variety of items Describe which to bid by a variety of bidders disposal stand; a bid receiving means for receiving a bid, which relates to an item of a plurality of items; and a bid categorizer for categorizing of the received bid as successful or unsuccessful.

According to one aspect of the present The invention provides a computer system for carrying out Auctions about a computer network with: an input device for presenting or Advertise information on a computer network which describes each item of a plurality of items that are eligible for bidding a variety of bidders are available, each item comprises at least one item; an auction selector to each lot of the plurality of Assign items to an auction format that consists of a plurality of available auction formats selected is; a bidding receiving device to receive a bid, which relates to at least part of an item of the majority sourced from items; and a bid categorizer, the bid received according to the selected auction format for the Automatically categorize items as successful or unsuccessful.

The present invention provides also corresponding procedures and computer-readable media.

A primary advantage of this system is that it results in higher prices for merchants as well as a wider distribution of their products. By including an auction format that is available to a wide audience via electronic means, the system and method of the present invention result in more bidders, greater demand and, consequently, higher prices for the sellers. Because this electronic system reaches a geographically different audience or readership, the product lines become the Kaufleu visible in areas where their products are normally neither sold nor advertised, resulting in an increasing sales volume without increasing marketing effort. As the network grows, so does the business. Furthermore, the electronic auction system is automatic and does not require a personal auctioneer, which enables many individual items to be auctioned at the same time and provides for a reduction in the costs associated with running an auction. Indeed, it would not be possible to operate an equivalent auction twenty-four hours a day or seven days a week without an electronic auction method and system according to the invention with potentially hundreds or even thousands of individual items and millions of potential bidders.

1 illustrates a preferred computer environment for performing the system and method of the present invention.

2 illustrates a merchandise catalog page offering an item for sale through an electronic auction on the Internet's World Wide Web;

3 shows a bidding form for bidding an auction item;

4 Fig. 3 is a block diagram of components illustrating a preferred embodiment of the present invention;

5 Fig. 3 is a flow chart showing the bid validator and its operating method;

6 Fig. 3 is a flow chart showing the auction manager and its operating procedure;

7 Fig. 4 is a flow chart showing the bid manager and its operating procedures;

8th Fig. 11 is a flowchart showing the electronic mail carrier and its operating method;

9 Fig. 3 is a flowchart showing the standard auction format and its operating method;

10 is a flowchart showing the Dutch auction format and its operating procedures;

11 Fig. 3 is a flowchart showing the progressive auction format and its operating method;

12 Fig. 3 is a flowchart showing the purchase or bid sale format and its operating procedure;

13 Fig. 14 is a flowchart showing the bidding amount determination and its operating method; and

14 Fig. 3 is a flowchart showing the price reduction facility according to the present invention and its operating method.

Full Description of a preferred embodiment

An inventive method and a system will be implemented an interactive multi-bidder auction without using a personal auctioneer or auctioneer to carry out the Auction described. Preferably with software implementation allows the electronic auction system for a group of bidders, Bidding interactively or with a reciprocal relationship using a computer or placing communication network automatically draws the Bids up, the bidder updates with status information of the current auction, closes the auction if necessary against further bidding and notified the bidding winners and losers over the auction result.

The system according to the invention has a database to keep descriptions of the goods for the auction, bids and other relevant information in a commercially available database system. Periodically, database searches are preferably carried out in order to on new items to consider, which potential bidders should be made visible. On such periodic research allows a person with the Task to maintain this system in his or her free time load relevant information into the database. If the database is loaded with information about the item and the item entered for a presentation to potential bidders is holding the system creates the goods information and generates one from one person readable catalog page for a viewing of a public Network, such as the World Wide Web on the Internet. tenderer will then be able to view the new item for auction and place their bids. These catalog pages preferably contain the current high bid, the bid increase, the available Quantity, the description of the goods and a picture of the item.

After access by a public Networking and seeing a catalog page of an item can the bidder press a button on the catalog page or a similar one activity provide for what causes the display of a bidding form on the screen causes becomes. The bidder bears then enter the necessary information to place a bid to Example his name and address, the amount of the bid, Payment information etc. and he then presses a template key for the Bid or take a similar one Action that the bid sends to the system.

The system receives the electronic bidding information and places it in the bidding database. Because this new bid will generally be greater than another party's last bid, the system becomes the kata Relaunch the log page of the item. This updated catalog page then shows the new high bid of any future bidders who will later access the catalog page.

Because most bidders in general do not access the network and look at the goods catalog pages, if they are updated with new high bids, the system can send electronic mail messages to the bidders, which through the bid just placed was outbid. These email messages preferably contain the relevant goods information, the current high bid, bid increment, etc. and encourage Bidder, a new and higher one Submit a bid to outbid the current high bidder. Allow these electronic mail messages the bidder to enter a new bid by clicking on the email message answers and sends it back to the system.

After receiving a new or revised bid via email the system follows the same set of activities as if the bidder placed a bid using the electronic bid form, when he looks at a goods catalog page, the system pulls that relevant bid information from the email message, deposited this information in the bidding database and then updates the goods catalog page if necessary. A such email message With bidding can also start a new round of email notifications evoke that go out to the last outbidders.

This process preferably continues until the System determines that the Item to be closed against further bidding, or another Closing trigger is detected. Then that closes System with the auction by updating the goods catalog page the latest bidder information and by sending email messages both to the winning bidders as well as to the losing bidders.

The present invention provides an electronic auction process and system to present of the goods for sale for Customers at an auction about an electronic network, such as the World Wide Web of the internet. Potential customers will be a number of descriptive Product catalog pages presented, through which they can move to Items of interest to find. After finding an interested one Can post Customers click a button on the screen to complete a form to represent for placing a bid on the lot. After submitting this bid the electronic auction system records and updates the bid the item's merchandise catalog page to reflect the current high bid or to show the commandments and to whom those commandments are attributed can. If after a period of no bidding activity the auction turns into a predetermined time is closed or when a desired If the sales volume is reached, the electronic auction system notifies you the bidding winners and losers by email and give a list the bidder on the closed goods catalog page of the lot on.

The present invention is preferably as a computer program 248 executed, which on a central server processing computer 250 running in 1 is shown and to a long distance network 275 is appropriate, which is used by many potential customers via remote connections 210 is accessible. A preferred network for practicing the present invention is the Internet, which is accessible to a significant percentage of the world's population, although the network may also be accessible to local or limited areas. Potential customers are on the screen 280 Product catalog pages presented, such as one in 2 shown as shown in 4 through the generator 25 is created for the goods catalog page. Each goods catalog page contains different activity buttons 5 that allow the customer to move from catalog page to catalog page and place bids using the keyboard 240 and the pointing device 260 , The user can view a list of available goods by pressing the button 7 call, or he can press the button 9 return to a central homepage.

By pressing the bid button 1 in 2 the customer will be presented with a bid form, such as in 3 is shown. The customer fills in the required information in the bid form and presses the button 2 "Place bid" to send the bid to the electronic auction system for processing. Other equivalent means of having a bid could be used, as will be understood by those skilled in the art, to which the present invention is directed.

4 illustrates a high level block diagram of the electronic auction system of the present invention. As shown, information from the bid form 20 received by the electronic auction system where it is from the bid validator 21 is processed. The bid validator 21 checks the bidding information provided by the customer on the bidding form 20 is entered to ensure that the bid is formatted correctly, all necessary data is available, and the entered data will appear believable. Exemplary functions of the bid validator 21 include: verifying the credit card information entered by the customer, checking that a full name and shipping address have been entered, the correct state abbreviation and zip code have been entered, a reasonable bid amount has been entered, and that a telephone or Fax number have been entered. When the bidding information is validated, the bidder places it lidisierer 21 the bid in the bid database 31 ,

The auction manager 26 preferably asks the bidding database again and again 31 to see if new bids have been placed. If new bids are found during this query, the auction manager calculates 26 the current high bidder or the high bidder and issues a command to the generator 25 for the merchandise catalog page to recreate a catalog page with updated bid information.

The auction manager 26 is also responsible for opening and closing auctions. This has resulted in the creation of merchandise items that are available for customer bidding and the blocking of their associated purchase or bidding features on the merchandise pages that have been presented to potential bidders but have been closed. If the auction manager 26 determines that a new lot should be opened for bidding or increasing, or that an existing lot should be closed, he gives to the generator 25 for the goods catalog page the order to generate or update the goods catalog pages for the appropriate items.

The electronic postman or email courier 27 keeps asking the bidding database 31 according to bids recently submitted by the auction manager 26 marked as outbid or with which an item was won in a recently closed auction. If such bids are found, the electronic postman formats them 27 an appropriate email message 24 and layer this message to the customer. Many customers read their email later in the day, which becomes a convenient mechanism to keep customers informed of the status of the goods they are actively bidding on. Bidders can click on an email message 24 which informs them that they have been outbid by responding by including a higher bid in the reply message. An email bid 22 sent in response to the notification is received by the electronic auction system and by the bid validator 21 processed in the manner described above.

5 illustrates in detail the process of bid validation as used by the bid validator 21 who in 4 is shown is achieved. A bid is submitted by the bid validator 21 received, and the customer is at step 41 in the customer database 28 searched. If there is no customer record for the customer, a new customer record is created 42 and into the customer database 28 placed. From there, the bid information is validated 43 , Like previously described. If the bidding data contains one or more errors, an error message is returned to the bidder 44 , preferably in the form of a well-formatted page that is submitted over the network, listing the errors found in the bid. If the bid is valid, as in step 43 then the bid is found in the bid database 31 placed.

6 gives a detailed description of the procedures used by the auction manager 26 be carried out. The auction manager 26 is preferably a continuously running system which begins by reading the current time at step 51 receives. He then checks to see if any new items need to be opened for sale by examining the commodity database to see if any new commodities are to be made available to customers for bidding at or before the current time , The operator 300 or any automated replacement can upload the goods and plan information to the database as in 1 is shown. When new items are to be announced, these items are opened for bidding 52 , The auction manager then checks the commodity database to see if any commodities should be closed against the customer bidding. If necessary, these items are closed against the bidding 53 , The auction manager 26 then checks the commodity database to see if any commodities published with a discount mark should be discontinued in terms of their prices. If necessary, the prices of these items are set according to price setting parameters for special items 54 , Such parameters may include bidding activity over time, received bid amount, and number of items that were bid for. The auction manager 26 updated 55 then the bid list for open items by recalculating the current high bidder list and recreating the goods catalog pages 26 to reflect these new commandments. This step will be more fully described below with reference to 7 described.

7 illustrates the procedures used by the bid manager when updating the open item bid list 55 be carried out as in 6 is shown. The bid manager starts by reviewing 61 whether there are more commodities to process. If such items are found, the bid manager selects an item 62 to process and searched 64 the bid database for bids for this item. These bids are sorted 65 A variety of different priority ranking functional schemes are used, depending on the auctioning method and system used for the particular item, as described in more detail below. Then the bids are marked 66 as either successful or unsuccessful, depending on the bid price of the corresponding bids and the amount of the item being bid on, in the Ratio to the amount of the item being auctioned. In a preferred embodiment, a lot of an item can be put up for auction, and individual bidders can bid for any amount of the desired item up to the amount of the item that is being auctioned.

The bid manager then checks 67 to see if there are any active power of attorney bids that are marked as unsuccessful. A power of attorney is a special type of bid that the auction manager 26 allows to automatically bid for the bidder up to a limited amount set up by the bidder when his or her initial bid is placed. The auction manager will raise the bid up to the limit as necessary. This feature allows the customer to get the lowest possible price without exceeding a limit that is preferably set when the bid is placed. If there are active power of attorney bids that are marked as unsuccessful, the bid manager increases 69 the power of attorney by a predetermined bid increment (a bid increment). This sorting process 65 , Marking 66 of bids and increments or increments 69 the power of attorney, as required, continues until there are either no further power of attorney that are marked as unsuccessful, or the power of attorney limits for the power of attorney have been reached. At this point the database 31 updated with the marked bids 68 ,

This procedure is then for everyone Lot of goods that is currently open for bidding by customers, repeated.

8th illustrates the procedure used by the electronic postman or email courier 27 is carried out by which bidders are informed when they have been outbid. If marked bids in the bid database 31 as shown in 7 updated, the e-mail messenger records 27 the presence 81 of these marked bids and searches 83 Inventory information on the item requested by the bidder. Constructed with this information 84 the email messenger 27 an email message informing the bidder that he or she has been outbid. After constructing the email message 24 sent to the bidder as in step 85 is shown.

One skilled in the art to which the present invention is directed will recognize that the various components of the electronic auction system can communicate between each other in various ways. In a preferred embodiment, the bid validator communicates 21 , the auction manager 26 and the email messenger 27 by adding, marking and updating records in the various databases. In each of these components periodically checks at least one of the databases to see if anything relevant to their corresponding functions has changed and takes action accordingly. However, the components could send direct messages between themselves or call each other through subroutines to signal important events that would require one or the other component to update its state.

One skilled in the art to which the present invention pertains turns further realizes that a Variety of different auction formats using the Basic technology described above can be performed. The The simplest is the "standard auction" format, through which the electronic auction system matches the goods to the highest bidder awards its bids when the bidding ends. Under use this format in case there is a multitude of a special item the system awards the goods to the highest bidder. tenderer can bid on more than one unit, and different, successful bidders are generally for to pay an object different prices.

9 illustrates the standard auction format where the bid manager 55 , in 6 shown, determines which bids are marked as successful or unsuccessful, as in step 66 in 7 is shown. The bid manager 55 starts by sorting 91 the bids according to the amount of the bid. If there are bids that remain to be processed, by step 97 the highest bid will be selected 98 to be tested. If the bid is below the minimum bid that is allowed for the specific item, as in step 93 the bid is marked as unsuccessful 99 , If not, the bid will be checked 94 to see if the crowd can be satisfied. A bid can be fulfilled if the quantity of the item for which the bid is made is available. This information is from the auction database 29 to disposal. If not, then the bid will be marked as unsuccessful 99 , Optionally, the system could ask the user if less than what was offered is acceptable, as in the box 310 in 2 is shown. If the bid amount can be met, as in step 94 is determined, then the bid is marked as successful 95 , and the amount of items remaining in the auction database 29 is recorded, is reduced by the bid amount 96 , After the remaining amount is reduced 96 , and if after the determination at step 97 If there are any remaining bids to mark, the next highest bid will be selected 98 , and the steps of the 9 are repeated.

The electronic auction system of the present invention also provides a "Dutch auction" format in which the electronic Auction system which commits the goods to all highest bidders for which inventory is available at the price offered by the lowest successful bidder. This format may be most preferred by customers when a majority of a particular item is auctioned. As with any bid, there is a range of bids submitted. In the Dutch auction format, the goods are awarded to the highest bidders, but to all successful bidders at the same price, the price offered by the lowest successful bidder.

10 illustrates the Dutch auction format, in which the in 6 shown bid managers 55 determines which bids to mark as successful or unsuccessful 66 , as in 7 is shown. The bid manager 55 starts sorting 111 the bids according to the amount of the bid. If there are any remaining bids to process, as in step 97 the highest bid is selected for review 98 , If the bid is below the minimum bid that is allowed for the particular item, as in step 93 the bid is marked as unsuccessful 99 , If not, the bid will be checked 94 to see if the bid quantity can be met. If the bid cannot be fulfilled, then the bid is marked as unsuccessful at step 99 , If the bid amount can be met, then the bid at step 95 marked as successful, and the remaining item amount is reduced by the bid amount 96 , The MinWin price is recorded at this time 117 , The MinWin price is the price above which a new bidder has to bid in order to be successful in the Dutch auction format if the auction is to be closed at this moment. The MinWin price is generally the bid price of the lowest bid, which is marked as successful. After recording the MinWin price at the step 117 where there are remaining bids to mark, like in step 97 the next highest bid is selected 98 , and the steps of the 7 are repeated.

The electronic auction system The present invention also includes a "progressive auction" format which the electronic auction system commodities the highest bidder on the basis of the price bid. Like the Dutch Auction format will be up to the amount of that available Item that is auctioned, the goods at the highest bid awarded. Different from the Dutch auction format the system, however, the goods according to the successful bidders Quantity bid at different prices. In a preferred one embodiment becomes a successful bidder for a single unit of a Object the object at the price of the lowest successful Bidding for awarded a single unit of the item. A successful bidder for one bigger amount of the same item, the item becomes the price of the lowest winning bids at that amount or less Awarded amount. For example, a successful bidder for one Lot of five the lowest price for any successful bid for a lot one to five pay the item. The one for a given amount of price paid is called the "MinWin" price for that amount Progressive auction format ensures that successful bidders for a lot of one Subject the lowest price of any other successful bidder for this Amount or less is paid. Using this format leads to fewer Prices for those who are successful on larger quantities of an item offer creates a drive for the volume purchase and leads therefore to a larger sales volume.

11 illustrates the progressive auction format, with the bid manager 55 who in 6 is shown determines which bids are successful or unsuccessful 66 are to be marked as in 7 is shown. The bid manager 55 starts sorting 131 of bids on the amount of the bid. When bids remain that need to be processed, like the step 97 the highest bid is selected 98 to be checked. If the bid is set below the minimum bid, which is for the particular item at step 93 allowed, the bid is marked as unsuccessful 99 , If not, the bid will go to step 94 checked to see if the bid quantity can be met. If not, then the bid will be marked as unsuccessful 99 , When the bid amount is checked and you are in step 94 found that it was fulfilled, then the bid was marked as successful 95 and the remaining item amount was reduced by the bid amount 96. The MinWin price was then entered 137 , The MinWin price is the price above which a new bidder must bid to be successful in the progressive auction format if the auction closed at that moment. The MinWin price is generally the bid price of the lowest bid in the current bid amount or lower that is marked as successful. After entering the MinWin price 137 , if there are still bids to mark, the next highest bid will be selected 98 , and the steps of the 11 are repeated.

The electronic auction system also includes a "buy or bid" format in which the electronic auction system awards commodities to bidders who place bids at or above an advertised selling price. The item remains ready for sale until the available quantity has been sold. the known under the made sales price are kept in reserve by the system. If a certain sales volume is not reached in a specific time, the electronic auction system automatically reduces the price by a predetermined amount or a predetermined percentage of the price and updates the goods catalog page accordingly. The lower price may be at or below some of the bids that are already in the bid database. If there are such bids, they will be converted into orders and the amount available will be reduced accordingly. Similarly, if a certain sales volume is exceeded in a particular time, the electronic auction system automatically increases the price by a certain amount or by a percentage of the price and updates the goods page accordingly. These automatic price changes allow the seller to react quickly to market conditions while keeping the price of goods in the best possible way for the seller.

12 illustrates the purchase or bid format used by the bid manager 55 , as in 6 shown decides which bids are successful or unsuccessful 66 , as in 7 shown are to be marked. The bid manager 55 starts by sorting 151 the bids according to their amount. If there are remaining bids to process, like the step 97 the highest bid is selected 98 to be checked. If the bid is below the current commodity price, like at 93 then the bid will be marked as unsuccessful 99 , If the bid is not below the current price, as determined at 93, then the bid is checked 94 to see if the bid quantity can be satisfied. If not, the bid will be unsuccessful 99 marked. If the bid quantity can be satisfied, then the bid is converted into an order 155 at the current price of the item, and the remaining amount of the item is reduced 96 , The remaining bids to process, as with 97 determined, are then reviewed and the steps taken 11 are repeated. From time to time, the current price of the merchandise item may be increased or decreased, either by manual entry by an operator 300 , as in 1 shown, or by automatic use of the "price reduction feature" described below with reference to 14 is described.

13 illustrates in more detail the step of determining whether the bid quantity can be met 94 , If it is determined that the bid amount is less than the amount of the trading item available at step 171 , then it is determined that the test at step 174 passed. If not, then the bid is at 172 checked to see if the bidder is willing to accept a reduced amount. Preferably, when bidding, the bidder indicates his willingness to accept a subset in the event that an insufficient amount of the item is available to satisfy the bid if it is successful. If at 172 If it is determined that the bidder is willing to accept a reduced quantity, then at 174 found that the test was passed. If not, the test will fail at 173 and the bid will go to, for example 99 in 9 marked as unsuccessful.

The electronic auction system also has a "price reduction" feature at which is the electronic auction system of the present invention Merchandise buyers promises to place the orders at the currently announced sales price. The item remains on sale until the available quantity is purchased. If a certain sales volume within a certain period of time is not achieved, the electronic auction system reduces automatically the price by a fixed amount or percentage and updates the merchandise catalog page accordingly. This lower price encourages buyer to use new price. If a certain sales volume in one certain period of time exceeded will be raised the electronic auction system automatically changes the price by one fixed amount or percentage and updated accordingly the merchandise side. These automatic price changes allow the system to To respond to market conditions while it prices the merchandise for the seller's benefit high as possible holds.

14 illustrates the price reduction price adjustment feature at which the auction manager 26 , as in 4 shown, periodically adjusting sales prices or minimum bid prices of merchandise 54 , according to a predetermined plan, as in 6 shown. When more merchandise items in the merchandise database 181 a merchandise item is selected for the price reduction 183 , If a price reduction event for the item, such as at 184 fixed, occurred, the price of the item is adjusted 185 according to the schedule for that individual item. Alternatively, the adjustment could be relative to the prices offered for the merchandise. The merchandise item is then updated in the database with the new selling price or the minimum bid price 186 , The steps of 14 are then repeated for each successive commodity item in the commodity database.

The electronic auction system of the present invention preferably has a "power of attorney" feature that can be applied to any auction format described above. 7 describes the auction manager 26 with the Power of Attorney Offering Complete. If proxy bids are used, the bidder places a bid for the highest amount that he wants to pay. However, the electronic auction system only shows the amount necessary to win the item, up to the amount of the currently high power of attorney bids from other bidders. Typically, the current high bids indicate an amount that is a bid increase above the second highest bid or bids, although a percentage above the second highest bids can also be used. In general, when a new bidder submits a bid that is above a currently displayed high bid, the power of attorney feature will cause the currently high bid to increase to an amount higher than the new bid up to the highest amount of the mandate Bids from the currently high bidder. If a new bidder places a bid that exceeds the power of attorney of the currently high bidder, the new bid becomes the current high bid and the previous high bid becomes the second highest bid. This feature allows bidders to participate in the electronic auction without revealing to other bidders the level to which they are willing to raise their bids while maintaining control of their maximum bid without closely monitoring the bidding. The system according to the invention automatically operates for the bidder. The feature guarantees proxy bidders the lowest possible price up to a certain maximum, without requiring frequent inquiries about the bid status.

One skilled in the art to which the present invention pertains will recognize that a variety of different auction formats can be implemented in addition to those described above. One skilled in the art will also recognize that the electronic auction system of the present invention can employ a "moveable shooting time feature" which automatically closes the auction for a particular item if no new bids are received within a predetermined time interval. This feature would normally be in a manner and implemented in a manner similar to that used to auction old items, such as at step 53 in 6 shown to close. This feature forces bidding activity in a shorter time than would otherwise be obtained because bidders are aware that the item will close automatically if no new bids are received in time. As a result, bidders have an incentive to remain active in the bidding process to avoid closing an item before the highest and most likely winning bids have been entered. The moveable closing time feature also allows more items to be auctioned during a period of time, since each item is closed once bidding activity stops; the bidding period is not artificially extended, as is the case when an item closes at a preset date and time. The moveable closing time feature of the present invention can be used either in conjunction with or independently of a fixed closing time for an item. When used in conjunction with a fixed closing time, the auction is either closed when the preset fixed time period for the item has expired or when no bidding activity has occurred within a preset time interval. This forces the bidding to be stopped at a certain time if the bidding activity is artificially extended.

A general description of the present invention and a preferred embodiment of the present invention have been disclosed above. professionals relating to the present invention will be recognized and in be able to additional changes in the methods and the system described, the fall within the teaching of this invention. Although preferred embodiment bids of the present invention according to the amount of money in the bid is included, selects, can for example also the preference for bids according to the time the transmission, the amount of the merchandise bid for which the bid was made, total bid value or some other combination of these characteristics can be determined. consequently all of these modifications and additions are considered within the scope viewed the invention, which only by the present here Expectations limited shall be.

Claims (37)

Computer system for conducting auctions via a computer network comprising: an input device ( 25 ) for presenting information in a computer network, each describing an item of a plurality of items available for bidding by a plurality of bidders, each item comprising at least one item, to an auction selection device ( 26 ) to assign each lot of the plurality of lots to an auction format selected from a plurality of available auction formats, a bidder to receive a bid relating to at least a part of a lot of the plurality of lots, and one Bid categorizer ( 26 ) to automatically categorize the received bid as successful or unsuccessful for the lot according to the selected auction format. The computer system of claim 1, wherein an auction format of the plurality of auction formats has one which consists of the Group was selected which consists of: Dutch Auction, standard auction, progressive auction and buy or bid auction. The computer system of claim 1, wherein the bid receiving device the bid for receives the item from a bid form. The computer system of claim 1, wherein the stop device designed for that is a text message from one of the plurality of bidders for one Item record and the message in conjunction with the descriptive Information for one Display or post items from the majority of items. The computer system of claim 1, wherein the stop device available is to while an auction for assign one item to another item in the plurality of items to add to the majority of items. The computer system of claim 1, wherein the bid receiving device Bids for receives at least two posts, the same time for this auction are open, the at least two items being different associated Have auction formats and with the categorizer for the bids according to the associated auction format for every item automatically the received bids as successful or unsuccessful categorized. The computer system of claim 3, which further a generating facility for has a bid form for generating a bid form, taking the bid form over the computer network for a bidder from the majority of the bidders is accessible for the purpose of surrendering a bid for at least part of an item from the plurality of items. Procedure for conducting auctions through a Computer network, the method comprising the steps of: Attacks or displaying sales information on a computer, which each item from a plurality of items used for bidding are available through a variety of bidders each item includes at least one item, Assign an auction format for each item from the plurality of items, which is of a variety available Auction formats selected has been, Receive a bid that relates to at least one Obtains part of an item from the plurality of items, and automatic Categorize the received bid as successful or not successful according to the corresponding auction format for the lot. Procedure for conducting auctions according to claim 8, one auction format from the plurality of auction formats one that is selected was created from the group consisting of: Dutch auction, standard auction, progressive auction and buy or bid auction. Procedure for conducting auctions according to claim 8, the step of receiving further comprising the step that this Bid for the item is received through a bid form. Procedure for conducting auctions according to claim 8, which further has the step that a bidder from the A plurality of bidders receive a text message and the message in connection with the descriptive information for one Item from the plurality of items is displayed. Procedure for conducting auctions according to claim 8, which further comprises the step that during an auction for a Item from the plurality of items Another item from the plurality of items added becomes. Procedure for conducting auctions according to claim 8, wherein the step of receiving a bid continues the Step that bids for at least two items are received that are open for auction at the same time, the have at least two lots of different related auction formats and the automatic categorization step continues Step that the received bits automatically as successful or unsuccessful are categorized according to the corresponding auction format for everyone Post. A computer readable medium that includes instructions for conducting auctions over a computer network through steps comprising: displaying on a computer sales information describing each lot from a plurality of lots available for bidding by a plurality of bidders, wherein each lot has at least one item, assigning an auction format to each lot from the plurality of lots selected from a plurality of available auction formats, receiving a bid for at least a portion of a lot from the plurality of lots, and automatically categorizing the received ge bots as successful or unsuccessful according to the corresponding auction format for the bid. The computer readable medium of claim 14, wherein an auction format is one of the plurality of auction formats which has been selected from the group consisting of: Dutch Auction, standard auction, progressive auction and buy or bid auction (buy or bid auction). The computer readable medium of claim 14, wherein the instructions for the receiving step continues with instructions for receiving the bid for the Show items through a bid form. The computer readable medium of claim 14, wherein the instructions for the display step further includes instructions to send a text message received by at least one of the plurality of bidders and the message in connection with the descriptive information for an item from the majority of items. The computer readable medium of claim 14, wherein the instructions continue to include instructions for adding one Post to the majority of items by providing information for them Items are posted or displayed during a Auction for another item from the plurality of items. The computer readable medium of claim 14, wherein the instructions for the receiving step further includes instructions to bid for at least to receive two lots that are open for the auction at the same time, whereby that have at least two lots of different associated auction formats, and the step for automatic categorization also includes instructions for automatic Categorize the received bids as successful or not successful according to the corresponding auction format for each Post. Computer system to enable a plurality of simultaneous auctions via a network, at least two auctions having different auction formats, the system comprising: an input or display device ( 25 ), for displaying sales information on a computer which describes each item from a plurality of items which are open simultaneously for an auction and for bidding by a plurality of bidders, each item containing at least one item, an auction selection device ( 26 ) for assigning each lot from the plurality of lots to an auction format selected from a plurality of available auction formats, a bidding receiving device for receiving bids for the plurality of lots which are simultaneously open for an auction, at least two lots of the plurality of lots have different associated auction formats, and a bid categorizer ( 26 ) to automatically categorize each bid received for a lot as successful or unsuccessful according to the selected auction format for that lot. 21. The computer system of claim 20, wherein an auction format from the plurality of auction formats has one which consists of selected in the group which includes: Dutch Auction, standard auction, progressive auction and buy or bid auction (buy or bid). 21. The computer system of claim 20, wherein the bid receiving device the bid for receives an item from a bid form. 21. The computer system of claim 20, wherein the display or anchor device for this is designed, a text message from a bidder from the majority received from bidders and the message in association with the descriptive To post information of an item from the plurality of items or display. 21. The computer system of claim 20, wherein the display device is available for that during a Auction to another lot from the plurality of lots one Add (further) items. 21. The computer system of claim 20, wherein an auction selector each lot from the plurality of lots from the plurality of available auction formats chosen Assigned auction format. A method of simultaneously performing a plurality of auctions on a computer network, at least two auctions from the plurality of auctions having different auction formats, and the method comprising the steps of: displaying sales information on a computer which describes each item from a plurality of items, available for bidding by a plurality of bidders, the plurality of lots being open for auction at the same time, each lot comprising at least one item and having an associated auction format selected from a plurality of available auction formats, receiving bids for the majority from pos ten that are simultaneously open for the auction, with at least two of the items from the plurality of items having different associated auction formats, and automatically categorizing each bid received for an item as successful or unsuccessful according to the associated one associated with that item auction format. Procedure for conducting auctions according to claim 26, at least one auction format being selected from the group, which features: Dutch Auction, standard auction, progressive auction and buy or bid auction. Procedure for conducting auctions according to claim 26, the receiving step further receiving a bid for one Post about has a bid form. Procedure for conducting auctions according to claim 26, wherein the displaying step further comprises the step of a text message is received by one of the plurality of bidders and the message in connection with the descriptive information for one Item from the plurality of items is presented. Procedure for conducting auctions according to claim 26, which continues adding one item to the plurality of items during the auction to one other items from the plurality of items. Procedure for conducting auctions according to claim 26, which further comprises the step that each item from the plurality lots from a variety of available auction formats Auction format is assigned. Computer-readable medium with instructions for simultaneous To run a variety of auctions across a computer network, with at least two auctions from the majority of auctions have different auction formats, with the instructions: represent of sales information on a computer, each item describe a plurality of items which are for bidding by a plurality available from bidders are, each item comprising at least one item and one has associated auction format that consists of a plurality of available auction formats is selected Receive of bids for several items that are open for the auction at the same time, wherein at least two items from the plurality of items are different have assigned auction formats, and automatic categorization any bid that is for an item is received as successful or unsuccessful according to the corresponding auction format For this Post. 33. The computer readable medium of claim 32, wherein one auction format comprises one of the plurality of auction formats, which one selected became from the group: Dutch Auction, standard auction, progressive auction and buy or bid auction (buy or bid). 33. The computer readable medium of claim 32, wherein the instruction for receiving bids includes instructions for receiving a bid for one Post about a bidding form. The computer readable medium of claim 32, which further includes instructions for receiving a text message for one item from a plurality of items from a bidder the majority of bidders and for presenting the message in conjunction with the descriptive information for the post. 33. The computer readable medium of claim 32, wherein the instructions still have instructions for adding one Lot to the majority of lots during another auction Items from the majority of items. The computer readable medium of claim 32, which further includes instructions that each item has an auction format from a variety of available Assigned auction formats.