Simulation Auction for Public Offering

A computer implemented system for developing a collaborative price forecast useful to bidders in an identified, real-world investment offering via auction, comprising:

• at least one data processor communicating with a communication network accessible to persons interested in the real-world investment offering;
• a code component executing on the at least one data processor configured with auction rules to perform a simulation auction corresponding to the real-world investment offering to determine a simulated clearing price and other market information from the simulation auction and for receiving simulation bids in the simulation auction for a simulated investment corresponding to the identified real-world investment offering;
• a code component executing on the at least one data processor for offering to accept simulation bids from simulation participants via the communication network, said offering requiring a simulation bid to state the total amount for which the simulation bid is made;
• a code component executing on the at least one data processor for receiving simulation bids via the communication network;
• a code component executing on the at least one data processor for applying the set of auction rules to the received simulation bids, to transform the received simulation bids into a simulated clearing price for the simulated investment in the simulation auction that forecasts the clearing price in the identified real-world investment offering;
• and
• a code component executing on the at least one data processor for evaluating simulation bids and selecting for an incentive reward certain simulation bids with greater relative collaborative forecasting utility, one evaluation metric for such utility being proximity of the simulation bid to the simulated clearing price, either above or below such clearing price.

A computer implemented method for collaborative development before occurrence of a real-world investment offering of price forecasting information for the real-world investment offering, comprising:

• configuring in an auction manager data processing system a simulation auction based on the real world investment offering, including selecting a set of auction rules for determining auction outcomes from simulation bids for a simulated investment corresponding to the real world investment offering;
• offering participation in the simulation auction by receiving simulation bids from simulation participants, each simulation bid stating a total simulation bid amount;
• receiving via a communication network a plurality of simulation bids submitted by simulation participants;
• compiling the received simulation bids prior to occurrence of the real world investment offering;
• before occurrence of the real world investment offering, applying in a computer processor the selected set of auction rules to the compiled simulation bids, to compute a simulated clearing price for the simulated investment in the simulation auction;
• providing to simulation participants price forecasting information before occurrence of the real world investment offering;
• and
• evaluating simulation bids and selecting for an incentive reward certain simulation bids with greater relative collaborative forecasting utility, one evaluation metric for such utility being proximity of the simulation bid to the simulated clearing price, either above or below such clearing price.