Automated discounting and negotiation
Embodiments of the present invention provide a system and method for automated negotiation and discounts for consumers and merchants. In an embodiment, an automated system negotiates discounts with each individual consumer, on a one-on-one basis, on behalf of a merchant while continually finding the optimum equilibrium between live supply and demand data. This may be achieved via a discount system utilizing an algorithm that may seek an ideal balance between supply & demand, and may simulate the merchant's price flexibility or urgency to sell merchandise based on one or more campaign criteria and current market conditions. In another embodiment, the system may also automatically negotiate with merchants, on behalf of the consumers, based on live supply and demand data and the consumers' negotiation preferences. In this manner, the entire negotiations process may be automated using incomplete or complete information to benefit both consumers and merchants alike.
1. A system for automatically conducting negotiations, the system comprising:
a server including a processor configured to:
access merchant campaign data for a product or service to be sold and access consumer campaign data that includes a limit for the product or service, wherein the merchant campaign data is supplied to the server by a merchant display user interface through a first communication network and includes a buy now price, wherein the consumer campaign data is supplied to the server by a consumer display user interface through a second communication network, and wherein the consumer display user interface displays a first option to execute a sale at the buy now price and a second option to execute an automated negotiation; and
responsive to selection of the second option:
automatically conduct a negotiation between a merchant and a consumer over a plurality of negotiation cycles in which the processor automatically increments a consumer bid, using an automated negotiation module by which the processor arrives at a Pareto efficient purchase price for the merchant and the consumer based on supply data, demand data, the merchant campaign data, and the consumer campaign data, wherein the processor arrives at the Pareto efficient purchase price based on:
a ratio of (i) a number of units of the product or service available for sale to (ii) a number of days the product or service is to be sold,
a ranking of the consumer bid for the product or service to be sold among all consumer bids for the product or service to be sold, and
a condition that the ranking of the consumer bid must be less than or equal to the ratio;
send the Pareto efficient purchase price to the consumer display user interface as a counteroffer; and
responsive to consumer confirmation of the counteroffer, execute a sale at the Pareto efficient purchase price.
2. The system of claim 1 , wherein the automated negotiations module relies on incomplete information to arrive at the Pareto efficient purchase price.
3. The system of claim 1 , wherein the automated negotiations module relies on complete information to arrive at the Pareto efficient purchase price.
4. The system of claim 1 , wherein the consumer delegates a negotiation authority to a trusted third party to conduct the negotiation based on the consumer campaign data.
5. The system of claim 1 , wherein:
the merchant campaign data includes one or more of a minimum price for the product or service, the number of units of the product or service available for sale, and the number of days the product or service is to be sold; and
the consumer campaign data includes one or more of a maximum for the product or service, trailer data, and an end date or time of the negotiation.
6. The system of claim 1 , wherein the consumer campaign data includes a trailer value which acts as a buffer to prevent the automated negotiations module from making undesired offers during volatility in the price of the product or service being sold.
7. The system of claim 1 , wherein the server conducts the negotiation in response to selection of the second option at the consumer display user interface.
8. The system of claim 1 , wherein the processor arrives at the Pareto efficient purchase price by obtaining a relevant number of units by dividing the ratio by two, and determining an average price of the last relevant number of units to have been sold.
9. The system of claim 8 , wherein the processor sets the Pareto efficient purchase price as equal to an average of (a) the average price of the last relevant number of units to have been sold and (b) an average price of units sold during a predetermined period.
10. The system of claim 1 , wherein the automated negotiations module is executed based on a code received from a mobile device of the consumer.
11. The system of claim 10 , wherein the code is received via a Near Field Communications (NFC) protocol.
12. The system of claim 10 , wherein the code is a barcode.
13. The system of claim 10 , wherein the code is a QR code.
14. The system of claim 1 , wherein the automated negotiations module is executed based on a display of a code by a mobile device of the consumer.
15. A computer-implemented method for automatically conducting negotiations, the method comprising:
accessing, by a computer processor of a server, merchant campaign data for a product or service being sold, wherein the merchant campaign data is supplied to the server by a merchant display user interface through a first communication network and includes a buy now price;
accessing, by the processor, consumer campaign data that includes a limit for the product or service, wherein the consumer campaign data is supplied to the server by a consumer display user interface through a second communication network, and wherein the consumer display user interface displays a first option to execute a sale at the buy now price and a second option to execute an automated negotiation; and
responsive to selection of the second option:
automatically conducting, by the processor, a negotiation between a merchant and a consumer over a plurality of negotiation cycles in which the processor automatically increments a consumer bid, using an automated negotiation module by which the processor arrives at a Pareto efficient purchase price for the merchant and the consumer based on supply data, demand data, the merchant campaign data, and the consumer campaign data, wherein the processor arrives at the Pareto efficient purchase price based on:
a ratio of (i) a number of units of the product or service available for sale to (ii) a number of days the product or service is to be sold,
a ranking of the consumer bid for the product or service to be sold among all consumer bids for the product or service to be sold, and
a condition that the ranking of the consumer bid must be less than or equal to the ratio;
sending, by the processor, the Pareto efficient purchase price to the consumer display user interface as a counteroffer; and
responsive to consumer confirmation of the counteroffer, executing, by the processor, a sale at the Pareto efficient purchase price.
16. The computer-implemented method of claim 15 , wherein the merchant campaign data includes one or more of a minimum price for the product or service, the number of units of the product or service available for sale, and the number of days the product or service is to be sold.
17. The computer-implemented method of claim 15 , wherein the demand data is generated using one or more offers for the product or service received at the server.
18. The system of claim 1 , wherein the demand data is generated using one or more offers for the product or service received at the server.
19. An article of manufacture comprising a non-transitory computer-readable storage medium storing instructions that are executable by a processor of a server and that, when executed by the processor, cause the processor to perform a method for automatically responding to offers conducting negotiations, the method comprising:
accessing merchant campaign data for a product or service being sold, wherein the merchant campaign data is supplied to the server by a merchant display user interface through a first communication network and includes a buy now price;
accessing consumer campaign data that includes a limit for the product or service, wherein the consumer campaign data is supplied to the server by a consumer display user interface through a second communication network, and wherein the consumer display user interface displays a first option to execute a sale at the buy now price and a second option to execute an automated negotiation; and
responsive to selection of the second option:
automatically conducting a negotiation between a merchant and a consumer over a plurality of negotiation cycles in which the processor automatically increments a consumer bid, using an automated negotiation module by which the processor arrives at a Pareto efficient purchase price for the merchant and the consumer based on supply data, demand data, the merchant campaign data, and the consumer campaign data, wherein the processor arrives at the Pareto efficient purchase price based on:
a ratio of (i) a number of units of the product or service available for sale to (ii) a number of days the product or service is to be sold,
a ranking of the consumer bid for the product or service to be sold among all consumer bids for the product or service to be sold, and
a condition that the ranking of the consumer bid must be less than or equal to the ratio;
sending, by the processor, the Pareto efficient purchase price to the consumer display user interface as a counteroffer; and
responsive to consumer confirmation of the counteroffer, executing, by the processor, a sale at the Pareto efficient purchase price.
20. The article of manufacture of claim 19 , wherein the merchant campaign data includes one or more of a minimum price for the product or service, the number of units of the product or service available for sale, and the number of days the product or service is to be sold.
21. The article of manufacture of claim 19 , wherein the demand data is generated using one or more offers for the product or service received at the server.