# US 2021/0343101 A1 · System and method for cryptographic choice mechanisms

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- Number: US 2021/0343101 A1
- Document ID: US20210343101A1
- Status: Published application
- Kind: A1
- Application number: 17/378,142
- Filed: 2021-07-16
- Published: 2021-11-04
- Earliest claimed: 2017-12-08
- Assignees: Efficient Auctions LLC
- Applicants: Efficient Auctions LLC
- Inventors: Andrew KOMO; Lawrence M AUSUBEL
- Web page: https://patentgrep.com/patent/US20210343101A1

## CPC

- G07C 13/005: {operating mechanically}
- H04L 63/0407: {wherein the identity of one or more communicating identities is hidden (cryptographic mechanisms or cryptographic arrangements for anonymous credentials or for identity based cryptographic systems H04L9/00)}
- G06F 16/24578: {using ranking}
- G06F 21/60: Protecting data
- G06Q 30/08: Auctions
- G06Q 50/34: Betting or bookmaking, e.g. Internet betting
- H04L 9/12: Transmitting and receiving encryption devices synchronised or initially set up in a particular manner
- H04L 63/12: {Applying verification of the received information (cryptographic mechanisms or cryptographic arrangements for data integrity or data verification H04L9/32)}
- G06Q 2230/00: Voting or election arrangements
- H04L 2209/08: Randomization, e.g. dummy operations or using noise
- G07C: TIME OR ATTENDANCE REGISTERS; REGISTERING OR INDICATING THE WORKING OF MACHINES; GENERATING RANDOM NUMBERS; VOTING OR LOTTERY APPARATUS; ARRANGEMENTS, SYSTEMS OR APPARATUS FOR CHECKING NOT PROVIDED FOR ELSEWHERE
- H04L: TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION (arrangements common to telegraphic and telephonic communication H04M)
- G06F: ELECTRIC DIGITAL DATA PROCESSING (computer systems based on specific computational models G06N)
- 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 provides an improved system and method for using cryptography to secure computer-implemented choice mechanisms. In several preferred embodiments, a process is provided for securing participants' submissions while simultaneously providing the capability of validating their submissions. This is referred to as a random permutation. In several other preferred embodiments, a process is provided for securing participants' advance instructions while simultaneously providing the capability of validating their advance instructions. This is referred to as a secure advance instruction. Applications include voting mechanisms, school choice mechanisms, and auction mechanisms.

## Claims

### Claim 1

A computer system for securing a submission in an auction of one or more items, said computer system comprising at least one computer, comprising:
receiving means of a first computer of said computer system for receiving a submission, wherein said submission includes bidding limits for one or more quantities of one or more items in the auction; and
encrypting means of said first computer for transforming said submission into an encrypted submission, said encrypted submission enabling validation of one or more constraints on the bidding limits included within said submission without revealing the bidding limits.

### Claim 2 (depends on 1)

The computer system of claim 1 which further comprises preventing means for preventing de-encryption of said encrypted submission until after a bidding round's end.

### Claim 3 (depends on 1)

The computer system of claim 1, said computer system comprising at least two computers, which further comprises:
sending means of said first computer for sending the encrypted submission to a second computer of said computer system;
receiving means of said second computer for receiving the encrypted submission; and
validating means of said second computer for validating the encrypted submission in relation to one or more constraints on the bidding limits included within said submission, wherein said validating occurs while the bidding limits are encrypted.

### Claim 4 (depends on 1)

The computer system of claim 1 wherein the auction is a clock auction.

### Claim 5 (depends on 4)

The computer system of claim 4 wherein bids are allowed at prices between clock prices.

### Claim 6 (depends on 1)

The computer system of claim 1 wherein the auction is a simultaneous multiple round auction.

### Claim 7 (depends on 1)

The computer system of claim 1 wherein a bidding limit included within said submission is disclosed only as revealed by continued bidding in the auction.

### Claim 8

A computer system for securing submissions in an auction of one or more items while simultaneously validating the submissions, said computer system comprising at least one computer, comprising:
receiving means of a computer of said computer system for receiving a submission, wherein said submission includes bidding limits for one or more quantities of one or more items in the auction and wherein the bidding limits included within said submission are encrypted; and
validating means of said computer for validating said submission in relation to one or more constraints on the bidding limits included within said submission, wherein said validating occurs while the bidding limits are encrypted.

### Claim 9 (depends on 8)

The computer system of claim 8 which further comprises preventing means for preventing de-encryption of the bidding limits included within said submission until after a bidding round's end.

### Claim 10 (depends on 8)

The computer system of claim 8 wherein the auction is a clock auction.

### Claim 11 (depends on 10)

The computer system of claim 10 wherein said computer announces a plurality of clock prices and wherein bids are allowed to be validated at prices between the clock prices.

### Claim 12 (depends on 8)

The computer system of claim 8 wherein the auction is a simultaneous multiple round auction.

### Claim 13 (depends on 8)

The computer system of claim 8 wherein the auction is conducted dynamically and includes an activity rule, which constrains current submissions based on prior submissions.

### Claim 14 (depends on 8)

The computer system of claim 8 wherein a bidding limit included within said submission is disclosed only as revealed by continued bidding in the auction.

### Claim 15 (depends on 8)

The computer system of claim 8 wherein a bidding limit included within said submission is disclosed only as necessary to justify an auction result.

### Claim 16

A method for securing a submission in an auction of one or more items, said method implemented on a computer system comprising at least one computer, said method comprising:
receiving a submission on a first computer of said computer system, wherein said submission includes bidding limits for one or more quantities of one or more items in the auction; and
transforming said submission into an encrypted submission on said first computer, said encrypted submission enabling validation of one or more constraints on the bidding limits included within said submission without revealing the bidding limits.

### Claim 17 (depends on 16)

The method of claim 16 which further includes preventing said encrypted submission from being de-encrypted until after a bidding round's end.

### Claim 18 (depends on 16)

The method of claim 16, said method implemented on a computer system comprising at least two computers, which further includes:
sending the encrypted submission from said first computer to a second computer of said computer system;
receiving the encrypted submission on said second computer; and
validating the encrypted submission on said second computer in relation to one or more constraints on the bidding limits included within said submission, wherein said validating occurs while the bidding limits are encrypted.

### Claim 19 (depends on 16)

The method of claim 16 wherein the auction is a clock auction.

### Claim 20 (depends on 19)

The method of claim 19 wherein bids are allowed between clock prices.

### Claim 21 (depends on 16)

The method of claim 16 wherein the auction is a simultaneous multiple round auction.

### Claim 22 (depends on 16)

The method of claim 16 wherein a bidding limit included within said submission is disclosed only as revealed by continued bidding in the auction.

### Claim 23

A method for securing submissions in an auction of one or more items while simultaneously validating the submissions, said method implemented on a computer system comprising at least one computer, said method comprising:
receiving a submission on a computer of said computer system, wherein said submission includes bidding limits for one or more quantities of one or more items in the auction and wherein the bidding limits included within said submission are encrypted; and
validating said submission on said computer in relation to one or more constraints on the bidding limits included within said submission, wherein said validating occurs while the bidding limits are encrypted.

### Claim 24 (depends on 23)

The method of claim 23 which further includes preventing de-encryption of the bidding limits included within said submission until after a bidding round's end.

### Claim 25 (depends on 23)

The method of claim 23 wherein the auction is a clock auction.

### Claim 26 (depends on 25)

The method of claim 25 wherein a plurality of clock prices is announced and wherein bids are allowed to be validated at prices between the clock prices.

### Claim 27 (depends on 23)

The method of claim 23 wherein the auction is a simultaneous multiple round auction.

### Claim 28 (depends on 23)

The method of claim 23 wherein the auction is conducted dynamically and includes an activity rule, which constrains current submissions based on prior submissions.

### Claim 29 (depends on 23)

The method of claim 23 wherein a bidding limit included within said submission is disclosed only as revealed by continued bidding in the auction.

### Claim 30 (depends on 23)

The method of claim 23 wherein a bidding limit included within said submission is disclosed only as necessary to justify an auction result.