System and method for an efficient dynamic multi-unit auction

A method for conducting a clock auction of one or more types of items among a plurality of users, said method implemented in a computer system comprising a plurality of computers including a first computer and at least one other computer which is located remotely from the first computer and interconnected by a communication system, said method comprising:

• transmitting first prices for one or more types of items from said first computer to said communication system;
• receiving one or more bids at said first computer from said communication system, said bids indicating quantities of items that a user wishes to transact based on said first prices;
• determining, based on received bids, whether the auction should continue or terminate;
• transmitting second prices for one or more types of items from said first computer, responsive to a determination to continue the auction, said second prices differing from the first prices for at least one type of item;
• receiving further bids at said first computer, said further bids indicating intra-round prices, each said intra-round price situated between the first price and the second price for a type of item, each said further bid indicating a quantity of items that a user wishes to transact at prices above the intra-round price and a quantity of items that the user wishes to transact at prices below the intra-round price;
• testing whether the received further bids satisfy one or more constraints and applying only those further bids that satisfy the constraints;
• and
• determining, based on applied further bids, whether the auction should continue or terminate.

A computer readable medium storing a sequence of instructions which, when executed on a system comprising a plurality of computers including a first computer and at least one other computer which is located remotely from the first computer and interconnected by a communication system implements a method for conducting a clock auction of one or more types of items among a plurality of users, said method comprising:

• transmitting first prices for one or more types of items from said first computer to said communication system;
• receiving one or more bids at said first computer from said communication system, said bids indicating quantities of items that a user wishes to transact based on said first prices;
• determining, based on received bids, whether the auction should continue or terminate;
• transmitting second prices for one or more types of items from said first computer, responsive to a determination to continue the auction, said second prices differing from the first prices for at least one type of item;
• receiving further bids at said first computer, said further bids indicating intra-round prices, each said intra-round price situated between the first price and the second price for a type of item, each said further bid indicating a quantity of items that a user wishes to transact at prices above the intra-round price and a quantity of items that the user wishes to transact at prices below the intra-round price;
• testing whether the received further bids satisfy one or more constraints and applying only those further bids that satisfy the constraints;
• and
• determining, based on applied further bids, whether the auction should continue or terminate.