Enhanced auction mechanism for online transactions
View Patent ↗An auction system and method for suitable use with online transactions which provide a plurality of enhanced auctions is disclosed. The present invention extends, augments or otherwise enhances various auction elements including, for example, the selection of participants, the grouping of participants, the moves made by participants, the bidding process of participants, the information revelation process, the auction closing process, and the auction clearing process, among others. In addition, enhanced auction modules may be used separately or together during the auction process.
1. An online auction system having at least one seller member (seller) and at least one buyer member (bidder), said auction system comprising:
a computer device configured to communicate with said at least one seller member and said at least one buyer member, the computer device comprising:
an interface module configured to provide a user interface between the seller and the bidder;
a transaction module operatively coupled for communication to said interface module configured to manage transactions associated with moves made by the seller and the bidder in conjunction with a sale of an item by the seller; and
a mechanism module operatively coupled for communication to said transaction module said mechanism module defining at least one auction rule, said transaction module further configured to carry out transactions according to said auction rule defined by said mechanism module, said mechanism module comprising rule defining programming associated with temporal auction transactions and second-price auction transactions, wherein said rule defining programming is configured to:
receive a bid from a bidder for an item for sale;
receive in conjunction with said bid an expiration condition for said bid; and
cancel said bid when said expiration condition is met;
allow the seller to close the auction at any time;
during the course of the auction, reveal to all bidders only the second-highest standing bid for an item for sale;
maintain the first-highest standing bid in confidence for the item of sale; and
allocate the sale price of the item for sale in the amount of the second-highest bid at the close of sale.
2. An online auction system having at least one seller member (seller) and at least one buyer member (bidder), said auction system comprising:
a computer device configured to communicate with said at least one seller member and said at least one buyer member, the computer device comprising:
an interface module configured to provide a user interface between the seller and the bidder;
a transaction module operatively coupled for communication to said interface module configured to manage transactions associated with moves made by the seller and the bidder in conjunction with a sale of an item by the seller; and
a mechanism module operatively coupled for communication to said transaction module, said mechanism module defining at least one auction rule, said transaction module further configured to carry out transactions according to said auction rule defined by said mechanism module, said mechanism module comprising rule defining programming associated with temporal negotiation transactions and second-price auction transactions, wherein said rule defining programming is configured to:
receive a bid offer from a bidder for an item for sale;
receive in conjunction with said bid offer a bid expiration condition for said bid offer; and
cancel said bid offer when said bid expiration condition is met;
receive a sale offer from a seller for an item for sale;
receive in conjunction with said sale offer a sale expiration condition for said sale offer;
cancel said sale offer when said sale expiration condition is met;
during the course of the auction, reveal to all bidders only the second-highest standing bid for an item for sale;
maintain the first-highest standing bid in confidence for the item of sale; and
allocate the sale price of the item for sale in the amount of the second-highest bid at the close of sale.
3. An online auction system having at least one seller member (seller) and at least one buyer member (bidder), said auction system comprising:
a computer device configured to communicate with said at least one seller member and said at least one buyer member, the computer device comprising:
an interface module configured to provide a user interface between the seller and the bidder;
a transaction module operatively coupled for communication to said interface module configured to manage transactions associated with moves made by the seller and the bidder in conjunction with a sale of an item by the seller; and
a mechanism module operatively coupled for communication to said transaction module, said mechanism module defining at least one auction rule, said transaction module further configured to carry out transactions according to said auction rule defined by said mechanism module, said mechanism module comprising rule defining programming associated with descending bid auction transactions, wherein said rule defining programming is configured to:
receive a starting sale price for at least one item for sale from a seller;
decrease said sale price for the item at a predetermined interval during the sale of the item;
during the course of the auction, reveal to all bidders only the second-highest standing bid for an item for sale;
maintain the first-highest standing bid in confidence for the item of sale;
allocate the sale price of the item for sale in the amount of the second-highest bid at the close of sale;
receive a reserve price for the item for sale, said reserve price lower than said starting sale price; and
terminate the sale of the item when the sale price is equal to said reserve price.