Efficient implementation of an auction proxy bid engine
View Patent ↗The invention provides a system and method for determining the winner or winners of an on-line auction accepting proxy bids. Proxy bids are bids that do not have a bid price, but instead have ceiling price that indicates the highest price a bidder is willing to bid for goods. The system and method according to the invention are able to sort the bids from highest to lowest and determine a winner or winners depending on the amount of goods being offered for sale. The system then generates a winning bid price by determining the lowest bid required to win the auction. The winning bidder or bidders pay this winning bid price.
1. A computer-based method for conducting an on-line auction of a quantity of goods, comprising:
from a communications network, receiving with an auction engine running on a computer device communicatively linked to the communications network a plurality of proxy bids comprising a limit price and a requested quantity;
sorting with the auction engine the proxy bids in a descending order based upon the limit prices for the prow bids;
operating the auction engine to determine at least one winner of the on-line auction comprising:
based on the descending order, assigning a winning bidder designation to a first highest one of the proxy bids;
from the quantity of goods, allocating the requested quantity of the proxy
bid of the winning bidder to the winning bidder;
when the quantity of goods is greater than zero, assigning a next winning bidder designation to a next highest one of the proxy bids and repeating the allocating of the requested quantity;
after the winner determining, generating with the auction engine a winning sale price to assign to each of the winning bidders, wherein the step of generating the winning sales price further includes:
determining from the descending order a highest losing proxy bid after a last selected one of the next winning proxy bids;
determining the limit price of the highest losing proxy bid; and incrementing the limit price of the highest losing proxy bid by a predetermined increment level to assign the winning sales price with the auction engine and wherein a bidder associated with one of the winning proxy bids declines the allocated goods;
allocating a portion of the requested quantity of the proxy bid of the highest losing proxy bid to the highest losing proxy bid; and
generating with the auction engine a second winning sale price for the highest losing proxy bid that is equivalent to the limit price of the highest losing proxy bid.
2. The method according to claim 1 , wherein the predetermined increment level is a monetary unit.
3. The method according to claim 1 , wherein the predetermined increment level is one dollar.