Patent ID: 7502757
Filing Date: 2009-03-10
Classification: G06Q

Abstract:
1. A method for optimizing prices at which products are sold in an automated marketplace, comprising: generating a matrix of all possible buyers and sellers for a product; for each buyer, providing a buyer's reserve price corresponding to a maximum purchase price for each possible seller; for each seller, providing a seller's reserve price corresponding to a minimum sales price for each possible buyer; calculating a utility value for each pairing of buyers and sellers, wherein the utility value is a linear utility value corresponding to the difference between each buyer's reserve price and each seller's reserve price; selecting a unique pairing of buyers and sellers that maximizes total utility; calculating a buyer optimal allocation of the total utility for all buyers and sellers in a stable manner; calculating a seller optimal allocation of the total utility for all buyers and sellers in a stable manner; and for each pair in the unique pairing, selecting a transaction price that allocates the utility between that seller and that buyer.