Method, system and business model for a buyer's auction with near perfect information using the internet
View Patent ↗A methodology, system and business model are disclosed for facilitating a fully automated buyer's auction in which the major types of transaction costs are significantly reduced by providing the buyer and the sellers with near-perfect information about one another, including information about buyer preferences and competing sellers' offers. The system implements a buyer's auction with multidimensional bidding that minimizes market intelligence, search, bargaining and transaction execution costs and thus creates more competitive, frictionless markets. Buyers and sellers can efficiently conduct the buyer's auction within a unified environment, thereby minimizing buyer integration costs as well. The buyer's auction generates commercially marketable proprietary information and a revenue stream for the auctioneer providing such a service.
1. A fully automated method of facilitating an electronic auction between a prospective buyer and a plurality of prospective sellers with near perfect information, comprising the steps of:
inputting into a computer a buyer's request for an offer;
communicating the request for an offer to at least two of the sellers;
receiving offers, including terms of sale in response to the request for an offer, from at least two of the sellers;
automatically generating rating information about seller offers based on a plurality of predetermined criteria;
communicating information regarding at least some of the seller offers to at least one other seller;
receiving an adjusted offer from at least one of the sellers during a specified auction period; and
communicating information regarding at least some of the seller offers and at least part of the rating information to the buyer, wherein a software process initiates the communicating of seller offers and rating information to the buyer when a buyer-specified event occurs, and wherein the buyer-specified event is the receipt of a seller offer with a rating above a buyer-specified rating level.