Patent ID: 6606607
Filing Date: 2003-08-12
Classification: G06Q

Abstract:
An auction method for use in e-commerce where an administrator of the auction is connected to a bidder by means of a global information network, said method comprising the steps of:assigning a minimum acceptable price (MAP) to a product based upon the cost of the product and a manufacturer's suggested retail price (MSRP) for the product, where MSRP>MAP; calculating a virtual minimum acceptable price (VMAP) for the product, where VMAP is a randomly calculated percent greater than MAP for the product, and wherein VMAP is calculated by assigning a tight, medium or loose bidding range for the product, with VMAP having a tight bidding range assigned a value X% greater than MAP, VMAP having a medium bidding range assigned a value Y% greater than MAP, and VMAP having a loose bidding range assigned a value Z% greater than MAP, where X>Y>Z; receiving an offer for a product from a bidder via the global information network; comparing the offer with VMAP and MSRP; determining the number of offers by said bidder for said product within a predetermined time period; declining said offer and preventing the buyer from bidding on said product for said predetermined time period if the offer is the buyer's third offer within said predetermined time period and is less than VMAP; accepting the offer if the offer is equal to or less than MSRP or assigning MSRP as the agreed upon price if the offer is greater than MSRP; or calculating and providing a counter offer to the buyer if the offer is the bidder's first or second offer within said predetermined time period and is less than VMAP, wherein said counter offer is between VMAP and MSRP.