Method and system for conducting electronic auctions with net present value bidding
OwnerSam E. Kinney, Jr., Vincent F. Rago +6inventors
InventorsSam E. Kinney, Jr., Vincent F. Rago, Glen T. Meakem, Robert G. Stevens, David J. Becker, Anthony F. Bernard, William D. Rupp, Daniel C. Heckmann
Life of this patent
Estimating the term…
Abstract
A method and system for an electronic auction is described. Bids by participating bidders are specified over multiple contract term segments (e.g., years), and define a pattern of cash payments over time. The auction system converts the defined pattern of cash payments over time into a net present value bid. The net present value bids are used to effect a comparison between participating bidders.
Claims8
A system for conducting an electronic auction between a plurality of bidders including at least first and second bidders, the first and second bidders competing to supply a buyer with products over a plurality of different contract term segments, wherein the supply of said products to the buyer over the plurality of contract term segments corresponds to a lot, comprising:
- means for receiving first bid information from the first bidder for said lot and for receiving second bid information from the second bidder for said lot, said first bid information comprising a first series of payments by the buyer over the plurality of contract term segments, said second bid information comprising a second series of payments by the buyer over said plurality of contract term segments;
- and
- means for generating a first non-zero net present value bid using at least said first bid information and for generating a second non-zero net present value bid using at least said second bid information, said generated first and second non-zero net present value bids being used to effect a relative comparison of bids, said relative comparison of bids enabling submitted bids, defined in one or more bidder-specific contexts, to be compared on a common competitive basis;
- wherein said means for generating generates said first non-zero net present value bid using a predefined discount rate structure and said first series of payments over said plurality of contract term segments, and said means for generating generates said second non-zero net present value bid using said predefined discount rate structure and said second series of payments over said plurality of contract term segments, said predefined discount rate structure and said plurality of contract term segments being common to said first and second bidders, said first non-zero net present value bid representing a sum of said first series of payments over said plurality of contract term segments which are discounted to a present value using said predefined discount rate structure, said second non-zero net present value bid representing a sum of said second series of payments over said plurality of contract term segments which are discounted to a present value using said predefined discount rate structure.
A method of participating in an electronic auction between a plurality of bidders including at least first and second bidders, the first and second bidders competing to supply a buyer with products over a plurality of different contract term segments, wherein the supply of said products to the buyer over the plurality of contract term segments corresponds to a lot, comprising the steps of:
- (a) receiving first bid information from a bidder for said lot and receiving second bid information from a second bidder for said lot, said first bid information comprising a first series of payments by the buyer over said plurality of contract term segments, said second bid information comprising a second series of payments by the buyer over said plurality of contract term segments;
- (b) generating a first non-zero net present value bid using at least said first bid information and generating a second non-zero net present value bid using at least said second bid information;
- and
- (c) wherein said first and second non-zero net present value bids information enable an auction server to generate a relative comparison of bids, originally defined in one or more bidder-specific contexts, on a common competitive basis;
- wherein step (b) comprises the step of generating said first non-zero net present value bid using a predefined discount rate structure and said first series of payments over said plurality of contract term segments, and generatings said second non-zero net present value bid using said predefined discount rate structure and said second series of payments over said plurality of contract term segments, said predefined discount rate structure and said plurality of contract term segments being common to said first and second bidders, said first non-zero net present value bid representing a sum of said first series of payments over said plurality of contract term segments which are discounted to a present value using said predefined discount rate structure, said second non-zero net present value bid representing a sum of said second series of payments over said plurality of contract term segments which are discounted to a present value using said predefined discount rate structure.
Dependencies are inferred from the claim text.