# US 2014/0156440 A1 · System and method for an efficient dynamic multi-unit auction

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- Number: US 2014/0156440 A1
- Document ID: US20140156440A1
- Status: Published application
- Kind: A1
- Application number: 13/898,214
- Filed: 2013-05-20
- Published: 2014-06-05
- Earliest claimed: 2000-05-18
- Inventors: Lawrence M. Ausubel
- Web page: https://patentgrep.com/patent/US20140156440A1

## CPC

- G06Q 30/08: Auctions
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR

## Abstract

The present invention implements an auction in which multiple types of goods may be auctioned in a dynamic process. In a preferred embodiment, the present invention is a system and method for computer implemented dynamic multi-unit auction in which the price paid or received by bidders tends to be independent of their own bids, in which participants may be provided with information concerning their competitors' bids as the auction progresses, and in which the confidentiality of high values may be maintained. Participants' quantities bid at a given time may be restricted to be less than or equal to the quantities bid at an earlier time. These features provide the advantage of improving economic efficiency of the auction design over the prior art.

## Claims

### Claim 1

A computer system for conducting a clock auction of one or more types of items among a plurality of users, said system comprising:
means for transmitting first prices for one or more types of items;
means for receiving one or more bids, said bids indicating quantities of items that a user wishes to transact based on said first prices;
means for determining, based on received bids, whether the auction should continue or terminate;
means for transmitting second prices for one or more types of items, responsive to a determination to continue the auction, said second prices differing from the first prices for at least one type of item;
means for receiving further bids, 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;
means for testing whether the received further bids satisfy one or more constraints and applying only those further bids that satisfy the constraints; and
means for determining, based on applied further bids, whether the auction should continue or terminate.

### Claim 2 (depends on 1)

The computer system of claim 1, wherein the one or more constraints tested by the means for testing include an activity rule that limits current bidding based on past bidding.

### Claim 3 (depends on 2)

The computer system of claim 2, wherein the activity rule is a requirement that a sum of quantities indicated by one or more current bids is no greater than a sum of quantities indicated by one or more prior bids.

### Claim 4 (depends on 1)

The computer system of claim 1 further including second determining means for determining final prices for one or more types of items, responsive to a determination to terminate the auction.

### Claim 5 (depends on 4)

The computer system of claim 4, wherein a final price is determined to be the intra-round price nearest the first price such that an aggregate quantity of items bid is no greater than an available quantity.

### Claim 6 (depends on 1)

The computer system of claim 1 further including third determining means for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction.

### Claim 7 (depends on 4)

The computer system of claim 4 further including third determining means for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction.

### Claim 8 (depends on 7)

The computer system of claim 7, wherein a user's final quantity is determined to be a quantity that the user wishes to transact at a final price, based on an applied further bid.

### Claim 9 (depends on 1)

The computer system of claim 1 further including fourth determining means for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction.

### Claim 10 (depends on 8)

The computer system of claim 8 further including fourth determining means for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction.

### Claim 11 (depends on 10)

The computer system of claim 10, wherein a user's final payment is determined to be a dot product of final quantities and final prices.

### Claim 12 (depends on 2)

The computer system of claim 2 further including second determining means for determining final prices for one or more types of items, responsive to a determination to terminate the auction.

### Claim 13 (depends on 3)

The computer system of claim 3 further including second determining means for determining final prices for one or more types of items, responsive to a determination to terminate the auction.

### Claim 14 (depends on 2)

The computer system of claim 2 further including third determining means for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction.

### Claim 15 (depends on 3)

The computer system of claim 3 further including third determining means for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction.

### Claim 16 (depends on 2)

The computer system of claim 2 further including fourth determining means for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction.

### Claim 17 (depends on 3)

The computer system of claim 3 further including fourth determining means for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction.

### Claim 18

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.

### Claim 19 (depends on 18)

The method of claim 18, wherein the one or more constraints against which the received further bids are tested include an activity rule that limits current bidding based on past bidding.

### Claim 20 (depends on 19)

The method of claim 19, wherein the activity rule is a requirement that a sum of quantities indicated by one or more current bids is no greater than a sum of quantities indicated by one or more prior bids.

### Claim 21 (depends on 18)

The method of claim 18 further including a second determining for determining final prices for one or more types of items, responsive to a determination to terminate the auction.

### Claim 22 (depends on 21)

The method of claim 21, wherein a final price is determined to be the intra-round price nearest the first price such that an aggregate quantity of items bid is no greater than an available quantity.

### Claim 23 (depends on 18)

The method of claim 18 further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction.

### Claim 24 (depends on 21)

The method of claim 21 further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction.

### Claim 25 (depends on 24)

The method of claim 24, wherein a user's final quantity is determined to be a quantity that the user wishes to transact at a final price, based on an applied further bid.

### Claim 26 (depends on 18)

The method of claim 18 further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction.

### Claim 27 (depends on 25)

The method of claim 25 further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction.

### Claim 28 (depends on 27)

The method of claim 27, wherein a user's final payment is determined to be a dot product of final quantities and final prices.

### Claim 29 (depends on 19)

The method of claim 19 further including second determining for determining final prices for one or more types of items, responsive to a determination to terminate the auction.

### Claim 30 (depends on 20)

The method of claim 20 further including second determining for determining final prices for one or more types of items, responsive to a determination to terminate the auction.

### Claim 31 (depends on 19)

The method of claim 19 further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction.

### Claim 32 (depends on 20)

The method of claim 20 further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction.

### Claim 33 (depends on 19)

The method of claim 19 further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction.

### Claim 34 (depends on 20)

The method of claim 20 further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction.

### Claim 35

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.

### Claim 36 (depends on 35)

The medium of claim 35, wherein the one or more constraints against which the received further bids are tested includes an activity rule that limits current bidding based on past bidding.

### Claim 37 (depends on 36)

The medium of claim 36, wherein the activity rule is a requirement that a sum of quantities indicated by one or more current bids is no greater than a sum of quantities indicated by one or more prior bids.

### Claim 38 (depends on 35)

The medium of claim 35 further including a second determining for determining final prices for one or more types of items, responsive to a determination to terminate the auction.

### Claim 39 (depends on 38)

The medium of claim 38, wherein a final price is determined to be the intra-round price nearest the first price such that an aggregate quantity of items bid is no greater than an available quantity.

### Claim 40 (depends on 35)

The medium of claim 35 further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction.

### Claim 41 (depends on 38)

The medium of claim 38 further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction.

### Claim 42 (depends on 41)

The medium of claim 41, wherein a user's final quantity is determined to be a quantity that the user wishes to transact at a final price, based on an applied further bid.

### Claim 43 (depends on 35)

The medium of claim 35 further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction.

### Claim 44 (depends on 42)

The medium of claim 42 further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction.

### Claim 45 (depends on 44)

The medium of claim 44, wherein a user's final payment is determined to be a dot product of final quantities and final prices.

### Claim 46 (depends on 36)

The medium of claim 36 further including second determining for determining final prices for one or more types of items, responsive to a determination to terminate the auction.

### Claim 47 (depends on 37)

The medium of claim 37 further including second determining for determining final prices for one or more types of items, responsive to a determination to terminate the auction.

### Claim 48 (depends on 36)

The medium of claim 36 further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction.

### Claim 49 (depends on 37)

The medium of claim 37 further including third determining for determining final quantities to be allocated to users for one or more types of items, responsive to a determination to terminate the auction.

### Claim 50 (depends on 36)

The medium of claim 36 further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction.

### Claim 51 (depends on 37)

The medium of claim 37 further including fourth determining for determining users' final payments for one or more types of items, responsive to a determination to terminate the auction.