Patent ID: 7953655
Filing Date: 2011-05-31
Classification: G06Q

Abstract:
1. A method for providing a reverse auction via a distributed computing environment, comprising: creating an electronic description of a system to be purchased by auction by a purchaser; electronically forwarding the description to a plurality of vendors; receiving from each of the plurality of vendors an electronically transmitted vendor proposal to supply the system; conducting, by a purchaser, a private one-on-one pre-negotiation with each vendor to ensure that the proposal from each vendor will produce a similar and acceptable result, including: conducting an increment negotiation session between the purchaser and each of the plurality of vendors separately to preset permissible downward bidding increments for each of the plurality of vendors during the auction, including: each of the plurality of vendors executes a contract which will be binding on the vendor if the vendor's bid during a subsequent auction process is accepted as the lowest bid; conducting, via the distributed computing environment, the auction during which the plurality of vendors bid for supplying the system to the purchaser; allowing the at least one vendor to downwardly bid against other vendors; and analyzing, via a processor, a downward bid from the at least one vendor to determine if a corresponding reduction in system performance associated with the downward bid is acceptable and if not, then preventing the vendor from downwardly bidding.