Abstract:
A method and system for validating a bid are described. A bid page is presented to a user. The bid page includes an interface to receive bid information and includes a bid placement indicia. Responsive to user-selection of the bid placement indicia, the bid information is received at an electronic auction system. The bid information is examined to validate the bid information.

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS  
       [0001]    This application is a continuation of pending U.S. application Ser. No. 09/706,849, filed Nov. 7, 2000, which is a continuation of U.S. application Ser. No. 08/624,259, now issued Pat. No. 6,243,691, filed Mar. 29, 1996.  
         [0002]    This application is related to copending patent application Ser. No. ______, entitled “Method and System for Offering an Item for Sale Using a User-Selectable Bid Indicia, filed ______; patent application Ser. No., entitled “Method and System for Updating Information On a Merchandise Catalog Page”, filed ______; patent application Ser. No. ______, entitled “Method and System for Automatically Adjusting a Posted Selling Price”, filed ______; patent application Ser. No., ______, entitled “Method and System for Performing a Bid Quantity Adjustment”, filed ______; patent application Ser. No. ______, entitled “Method and System for Performing a Buy or Bid Auction”, filed ______; patent application Ser. No. ______, entitled “Method and System for Providing Status Updates”, filed ______; patent application Ser. No. ______, entitled “Method and System for Adjusting a Close Time of an Auction”, filed ______; patent application Ser. No. ______, entitled “Method and System for Performing a Progressive Auction”, filed ______; patent application Ser. No. ______, entitled “Method and System for Performing Proxy Bidding”, filed ______; patent application Ser. No. ______, entitled “Method and System for Providing Simultaneous On-Line Auctions”, filed ______; each commonly assigned with the present invention.  
     
    
     
       BACKGROUND OF THE INVENTION  
         [0003]    1. Field of the Invention  
           [0004]    The present invention relates generally to electronic commerce and more particularly to conduction an interactive auction over an electronic network.  
           [0005]    2. Background of the Invention  
           [0006]    Auctions usually take the form of a physical gathering of bidders assembled together within an auction house. Auctions presenting more valuable, collectible merchandise, such as art, coins and antiques, are often preceded by preparation of a catalog of merchandise, circulated to interested parties in advance of the gathering at the auction house, where bidding by those physically present will take place. For auctions of more mundane items, such as household possessions, estate sales and the like, the interested bidders simply appear at the appointed time and place and bid on merchandise in which they are interested.  
         SUMMARY OF THE INVENTION  
         [0007]    A method and system for validating a bid includes presenting a bid page to a user. The bid page includes an interface to receive bid information and includes a bid placement indicia. Responsive to user-selection of the bid placement indicia, the bid information is received at an electronic auction system. The bid information is examined to validate the bid information.  
       
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0008]    An exemplary embodiment of the present invention is illustrated in the accompanying drawings in which like references include similar elements and in which:  
         [0009]    [0009]FIG. 1 illustrates an exemplary computer environment for implementing the system and method of the present invention;  
         [0010]    [0010]FIG. 2 illustrates an exemplary merchandise catalog page offering an item for sale via electronic auction on the Internet&#39;s World Wide Web;  
         [0011]    [0011]FIG. 3 depicts an exemplary bid form for bidding on an auction item;  
         [0012]    [0012]FIG. 4 is a block diagram of components illustrating an exemplary embodiment of the present invention;  
         [0013]    [0013]FIG. 5 is a flowchart illustrating an exemplary bid validator and its method of operation;  
         [0014]    [0014]FIG. 6 is a flowchart illustrating an exemplary auction manager and its method of operation;  
         [0015]    [0015]FIG. 7 is a flowchart illustrating an exemplary bid manager and its method of operation;  
         [0016]    [0016]FIG. 8 is a flowchart illustrating an exemplary electronic mail messenger and its method of operation;  
         [0017]    [0017]FIG. 9 is a flowchart illustrating an exemplary standard auction format and its method of operation;  
         [0018]    [0018]FIG. 10 is a flowchart illustrating an exemplary Dutch auction format and its method of operation;  
         [0019]    [0019]FIG. 11 is a flowchart illustrating an exemplary progressive auction format and its method of operation;  
         [0020]    [0020]FIG. 12 is a flowchart illustrating an exemplary buy or bid sale format and its method of operation;  
         [0021]    [0021]FIG. 13 is a flowchart illustrating an exemplary bid quantity determination and its method of operation; and  
         [0022]    [0022]FIG. 14 is a flowchart illustrating an exemplary markdown price adjustment and its method of operation.  
     
    
     DETAILED DESCRIPTION  
       [0023]    A method and system for validating a bid are disclosed. In the following description, for the purposes of explanation, numerous specific details are set forth in order to provide a thorough understanding of the present invention. It will be evident, however, to one skilled in the art that the present invention may be practiced without these specific details.  
         [0024]    An exemplary system includes a database for maintaining descriptions of the merchandise for auction, the bids, and other relevant information in a commercially available database system. Database searches may be performed periodically to check for new items to be made visible to potential bidders. Such periodic searching allows an individual charged with maintaining this system to load relevant information into the database at his or her leisure. Once the database is loaded with information about the item and the item is scheduled for presentation to potential bidders, the system takes the merchandise information and creates a human readable catalog page for a viewing over a public network such as the Internet&#39;s World Wide Web. Bidders are then able to view the new item for auction and to place their bids. These catalog pages preferably contain the current high bid, bid increment, quantity available, merchandise description, and picture of the item.  
         [0025]    Upon accessing a public network and seeing an item&#39;s catalog page, the bidder may press a button on the catalog page or take some similar action which causes a bid form to be displayed on the screen. The bidder then enters the information necessary to place a bid, such as their name and address, bid amount, payment information, etc., and then presses a bid submission button, or takes a similar action which sends the bid to the system.  
         [0026]    The system receives the electronic bid information and places it in the bid database. Because this new bid will, in general, be a bid for a higher amount than was last bid by another party, the system will regenerate the item&#39;s catalog page. This updated catalog page will then show the new high bid to any prospective bidders who later access that catalog page.  
         [0027]    Because most bidders will not, in general, be accessing the network and viewing the merchandise catalog pages as they are updated with new high bids, the system may send electronic mail notifications to bidders who have been outbid by the just-placed bid. These electronic mail notification messages may contain the relevant merchandise information, the current high bid, the bid increment, etc., and encourage the bidder to submit a new and higher bid to outbid the current high bidder. These electronic mail notification messages allow the bidder to enter a new bid by replying to the electronic mail message and sending it back to the system.  
         [0028]    Upon receiving a new or revised bid via electronic mail, the system follows the same set of actions as when the bidder places a bid using the electronic bid form when viewing a merchandise catalog page, namely, the system extracts the relevant bid information from the electronic mail message, deposits this information in the bid database, and then updates the merchandise catalog page as appropriate. Such an electronic mail message bid may further cause a new round of electronic mail notifications to go out to the recently outbid bidders.  
         [0029]    This process may continue until the system detects that the item is scheduled to be closed for further bidding or another closing trigger is detected. At this point, the system closes the auction by updating the merchandise catalog page with the final winning bid information and by sending electronic mail notifications to both the winning bidder or bidders and the losing bidder or bidders.  
         [0030]    The exemplary embodiment of the present invention provides an electronic auction method and system for presenting merchandise for sale at auction to customers over an electronic network, such as the Internet&#39;s World Wide Web. Potential customers are presented with a series of descriptive merchandise catalog pages through which they may navigate to find items (lots) of interest. Upon finding a lot of interest, customers may click a button on screen to display a form for placing a bid on the lot. After submitting this bid, the electronic auction system records the bid and updates the lot&#39;s merchandise catalog page to show the current high bid or bids and to whom such bids are attributable. When the auction is closed, after a period of no bidding activity, at a predetermined time, or when a desired sales volume is reached, the electronic auction system notifies the winning and losing bidders by electronic mail and posts a list of the winning bidders on the closed lot&#39;s merchandise catalog page.  
         [0031]    The exemplary embodiment of the present invention may be implemented as a computer program  248  running on a central server host computer  250 , shown in FIG. 1, attached to a wide area network  275  accessible by many potential customers through remote terminals  210 . An exemplary network for implementing the present invention is the Internet which is accessible by a significant percentage of the world population, although the network may also be a local area or limited area accessible network. Potential customers are presented at screen  280  with merchandise catalog pages, such as the one shown in FIG. 2, generated by merchandise catalog page generator  25  shown in FIG. 4. Each merchandise catalog page includes several action buttons  5  that allow the customer to move from catalog page to catalog page and to place bids using keyboard  240  and pointing device  260 . The user may call up an index of available merchandise by pressing button  7  or may return to a central home page by pressing button  9 .  
         [0032]    By pressing bid button  1  in FIG. 2, the customer is presented with a bid form such as the one shown in FIG. 3. The customer fills out the required information in the bid form and presses “Place Bid” button  2  to send the bid to the electronic auction system for processing. Other equivalent means for submitting a bid could be used, as understood by those skilled in the art to which the present invention pertains.  
         [0033]    [0033]FIG. 4 illustrates a high level block diagram of the electronic auction system according to one embodiment of the present invention. As shown, information from bid form  20  is received by the electronic auction system where it is processed by bid validator  21 . Bid validator  21  examines the bid information entered by the customer on bid form  20  to ensure that the bid is properly formatted, all necessary data is present, and the data values entered look credible. Exemplary functions of bid validator  21  include verifying credit card information entered by the customer, checking that a complete name and shipping address has been entered, that the proper state abbreviation and zip code have been entered, that an appropriate bid amount has been entered, and that a telephone or facsimile number has been entered. Once the bid information has been validated, the bid validator  21  places the bid in bid database  31 .  
         [0034]    Auction manager  26  may frequently query the bid database  31  to see if any new bids have been placed. If new bids are found during the query, then auction manager  26  calculates the current high bidder or bidders and instructs merchandise catalog page generator  25  to regenerate a catalog page with the updated bid information.  
         [0035]    Auction manager  26  is also responsible for opening and closing auctions. This entails making merchandise lots available for bidding by customers and disabling their associated buy or bid features on the merchandise pages that have been posted to potential bidders but have closed. When auction manager  26  determines that a new lot should be opened for bidding or an available lot should be closed, it instructs merchandise catalog page generator  25  to create or update the merchandise catalog pages for the appropriate lots.  
         [0036]    Electronic mail messenger  27  frequently queries bid database  31  for bids recently marked by auction manager  26  as having been outbid or as having won an item in a recently closed auction. If such bids are found, the electronic mail messenger  27  formats an appropriate electronic mail notification message  24  and sends this message to the customer. Many customers read their electronic mail throughout the day, making this a convenient mechanism for keeping them informed about the status of merchandise on which they are actively bidding. Bidders may reply to an electronic mail notification message  24  informing them that they have been outbid by including an increased bid amount in the reply message. An electronic mail bid  22  sent in reply to the notification is received by the electronic auction system and processed by bid validator  21  as described above.  
         [0037]    [0037]FIG. 5 illustrates in detail an exemplary procedure of bid validation as accomplished by bid validator  21  shown in FIG. 4. A bid is received by bid validator  21  and the customer is looked up at step  41  in customer database  28 . If no customer record exists for the customer then a new customer record is created  42  and placed in customer database  28 . From there, the bid information is validated  43  as previously described. If the bid data includes one or more errors, then an error message is returned  44  to the bidder, for example in the form of a well-formatted page posted across the network, itemizing the errors found in the bid. If the bid is valid, as found in step  43 , then the bid is placed  46  in bid database  31 .  
         [0038]    [0038]FIG. 6 provides a detailed illustration of exemplary procedures carried out by auction manager  26 . Auction manager  26  may be a continuously running system that begins by getting the current time as at step  51 . It then checks to see if any new items for sale are to be opened by examining the merchandise database to see if any new merchandise items are scheduled to be made available for bidding by customers at or before the current time. Operator  300 , or some automated substitute, may upload merchandise and scheduling information to the database, as shown in FIG. 1. If new merchandise items are scheduled for posting, these items are opened for bidding  52 . The auction manager then examines the merchandise database to see if any merchandise items are scheduled to be closed from customer bidding. If so, these items are closed from bidding  53 . Auction manager  26  then examines the merchandise database to see if any merchandise items posted with a price markdown feature are scheduled to have their prices adjusted. If so, the prices of these items are adjusted  54  in accordance with the particular item&#39;s price adjustment parameters. Such parameters may include bidding activity over time, amount of bids received, and number of items bid for. Auction manager  26  then updates  55  the bid list for open items by recalculating the current high bidder list and regenerating the merchandise catalog pages  56  to reflect these new bids. This step is more fully described below with reference to FIG. 7.  
         [0039]    [0039]FIG. 7 illustrates exemplary procedures carried out by the bid manager in updating the bid list for open items  55  as shown in FIG. 6. The bid manager begins by checking  61  if there are more merchandise items to be processed. If such items are found, the bid manager selects  62  a merchandise item to process and queries  64  the bid database for bids for this item. These bids are sorted  65  using a variety of different priority ranking schemes depending upon the auction method and system used for the particular merchandise item, as described in more detail below. Then, the bids are marked  66  as either successful or unsuccessful depending upon the bid price of the respective bids and the quantity of the item being bid on relative to the quantity of the item being auctioned. In an exemplary embodiment, a quantity of an item may be put up for auction, and individual bidders may bid on any quantity of the item desired, up to the quantity of the item being auctioned.  
         [0040]    The bid manager then checks  67  to see if there are any active proxy bids marked as unsuccessful. A proxy bid is a special bid type that allows auction manager  26  to automatically bid on the bidder&#39;s behalf up to a limited amount established by the bidder when his or her initial bid is placed. The auction manager will increase the bid as necessary up to the limit amount. This feature allows the customer to get the lowest possible price without exceeding a limit preferably established when the bid is entered. If there are active proxy bids marked as unsuccessful, then the bid manager increments  69  the proxy bids by a preset bid increment. This procedure of sorting  65  marking  66  bids and incrementing  69  the proxy bids as required continues until either there are no additional proxy bids marked as unsuccessful or the proxy limits have been reached on the proxy bids. At this point, bid database  31  is updated  68  with the marked bids. This process is then repeated for each merchandise lot open at the current time for bidding by customers.  
         [0041]    [0041]FIG. 8 illustrates exemplary procedures carried out by electronic mail messenger  27  which notifies bidders when they have been outbid. When marked bids are updated in bid database  31  as shown in FIG. 7, electronic mail messenger  27  detects  81  the presence of these marked bids and then looks up  82  the customer&#39;s electronic mail address and looks up  83  inventory information on the item desired by the bidder. With this information, electronic mail messenger  27  constructs  84  an electronic mail message informing the bidder that he or she has been outbid. Once constructed, the electronic mail notification message  24  is sent to the bidder as shown at step  85 .  
         [0042]    Various components of the electronic auction system can communicate between themselves in a variety of ways. In an exemplary embodiment, bid validator  21 , auction manager  26 , and electronic mail messenger  27  communicate by adding, marking, and updating records in the various databases. Each of these components periodically checks at least one of the databases to see if anything relevant to their respective functions has changed and take action accordingly. However, the components could send direct messages between themselves or call each other by means of program subroutines to signal important events that would require one or the other component to update its state.  
         [0043]    A variety of different auction formats may be implemented using the basic technique described above. The simplest is the “Standard Auction” format, whereby the electronic auction system awards the merchandise to the top bidder or bidders in accordance with their bids once bidding has stopped. Using this format, if there is a plurality of a specific item, the system awards the merchandise to the top bidders. Bidders may bid on more than one unit, and different successful bidders will, in general, pay different prices for an item.  
         [0044]    [0044]FIG. 9 illustrates the exemplary Standard Auction format where bid manager  55 , shown in FIG. 6, determines which bids to mark as successful or unsuccessful, as shown in step  66  in FIG. 7. Bid manager  55  begins by sorting  91  the bids by amount of the bid. If there are bids remaining to be processed, determined at step  97 , the highest remaining bid is selected  98  to be checked. If the bid is below the minimum bid allowed for the particular merchandise item, as determined at step  93 , the bid is marked  99  as unsuccessful. If not, the bid is checked  94  to see if the quantity may be satisfied. A bid may be satisfied if the quantity of the item bid upon is available. This information is available from auction database  29 . If not, then the bid is marked  99  as unsuccessful. Optionally, the system could ask the user if a lesser quantity than bid upon will be acceptable, as shown in FIG. 2 at box  310 . If the bid quantity can be satisfied, as determined at step  94 , then the bid is marked  95  as successful and the item quantity remaining, recorded in auction database  29 , is decremented  96  by the bid quantity. After the quantity remaining is decremented  96 , and if, as determined at step  97 , there are still bids remaining to be marked, the next highest bid is selected  98  and the steps of FIG. 9 are repeated.  
         [0045]    The exemplary electronic auction system of the present invention also provides a “Dutch Auction” format, wherein the electronic auction system awards the merchandise to all of the top bidders for whom there is available inventory at the price bid by the lowest successful bidder. This format may be preferred by customers for being the most fair when a plurality of a specific item is being auctioned. As with all bidding, there will be a range of bids submitted. In the Dutch Auction format, the highest bidders are awarded the merchandise but at the same price for all successful bidders, the price bid by the lowest successful bidder.  
         [0046]    [0046]FIG. 10 illustrates the exemplary Dutch Auction format whereby bid manager  55  shown in FIG. 6 determines which bids to mark  66  as successful or unsuccessful, as shown in FIG. 7. Bid manager  55  begins by sorting  111  the bids by amount of the bid. If there are bids remaining to be processed, as determined at step  97  the highest bid is selected  98  to be checked. If the bid is below the minimum bid allowed for the particular merchandise item, as determined at step  93 , the bid is marked as unsuccessful  99 . If not, the bid is checked  94  to see if the bid quantity may be satisfied. If the bid cannot be satisfied, then the bid is marked as unsuccessful at step  99 . If the bid quantity can be satisfied, then the bid is marked as successful at step  95  and the item quantity remaining is decremented  96  by the bid quantity. At this time the MinWin price is recorded  117 . The MinWin price is the price above which a new bidder must bid in order to be successful in the Dutch Auction format were the auction to close at that moment. The MinWin price is, in general, the bid price of the lowest bid that is marked as successful. After recording the MinWin price at step  117 , where there are still bids remaining to be marked, as determined at step  97 , the next highest bid is selected  98  and the steps of FIG. 10 are repeated.  
         [0047]    The exemplary electronic auction system may also include a “Progressive Auction” format, wherein the electronic auction system awards the merchandise to the top bidders based on price bid. As with the Dutch Auction format, the highest price bids are awarded the merchandise up to the quantity available of the item being auctioned. However, unlike the Dutch Auction format, the system awards the merchandise to the successful bidders at different prices depending on the quantity bid. In the exemplary embodiment, a successful bidder for a single unit of an item is awarded the item at the price of the lowest successful bid for a single unit of the item. A successful bidder for a higher quantity of the same item is awarded the item at the price of the lowest successful bid at that quantity or any lower quantity. For example, a successful bidder for a quantity of five would pay the lowest price for any successful bid for quantity one through five of the item. The price paid for a given quantity is termed the “MinWin” price for that quantity. The Progressive Auction format ensures that successful bidders for a quantity of an item pay the lowest price paid by any other successful bidder at that quantity level or below. Use of this format leads to lower prices for those who successfully bid on larger quantities of an item, provides an impetus for volume buying, and therefore leads to greater sales volume.  
         [0048]    [0048]FIG. 11 illustrates the exemplary Progressive Auction format, wherein bid manager  55  shown in FIG. 6 determines which bids to mark as successful or unsuccessful  66  as shown in FIG. 7. Bid manager  55  begins by sorting  131  the bids by amount of the bid. If there are bids remaining to be processed, as determined at step  97 , the highest bid is selected  98  to be checked. If the bid is determined to be below the minimum bid allowed for the particular merchandise item at step  93 , the bid is marked as unsuccessful  99 . If not, the bid is checked at step  94  to see if the bid quantity can be satisfied. If not, then the bid is marked  99  as unsuccessful. If the bid quantity is checked and found to be satisfied at step  94 , then the bid is marked as successful  95  and the item quantity remaining is decremented  96  by the bid quantity. The MinWin price is then recorded  137 . The MinWin price is the price above which a new bidder must bid in order to be successful in the Progressive Auction format were the auction to close at that moment. The MinWin price is, in general, the bid price of the lowest bid at the current bid quantity or lower that is marked as successful. After recording the MinWin price  137 , if there are still bids remaining to be marked, the next highest bid is selected  98  and the steps of FIG. 11 are repeated.  
         [0049]    The exemplary electronic auction system may also include a “Buy Or Bid” format wherein the electronic auction system awards merchandise to bidders who place bids at or above a posted selling price. The item remains for sale until the available quantity is purchased. Bids that are below the posted selling price are maintained in reserve by the system. If a certain sales volume is not achieved in a specified period of time, the electronic auction system automatically reduces the price by a predetermined amount or a predetermined percentage of the price and updates the merchandise catalog page accordingly. The lower price may be at or below some of the bids already in the bid database. If such bids are present, they are then converted to orders and the quantity available is reduced accordingly. Similarly, if a certain sales volume is exceeded in a specified period of time, the electronic auction system automatically increases the price by a set amount or by a set percentage of the price and updates the merchandise page accordingly. These automatic price changes allow the seller to respond quickly to market conditions while keeping the price of the merchandise as high as possible to the sellers benefit.  
         [0050]    [0050]FIG. 12 illustrates the exemplary Buy Or Bid format whereby bid manager  55 , as shown in FIG. 6, determines which bids to mark as successful or unsuccessful  66 , as shown in FIG. 7. Bid manager  55  begins by sorting  151  the bids by amount. If there are bids remaining to be processed, as determined at step  97 , the highest bid is selected  98  to be checked. If the bid is below the current price of the merchandise item, as determined at  93 , then the bid is marked  99  unsuccessful. If the bid is not below the current price, as determined at  93 , then the bid is checked  94  to see if the bid quantity can be satisfied. If not, the bid is marked as unsuccessful  99 . If the bid quantity can be satisfied, then the bid is converted into an order  155  at the current price of the item and the item&#39;s quantity remaining is decremented  96 . The bids remaining to be processed, as determined at  97 , are then checked and the steps of FIG. 11 are repeated. From time to time, the current price of the merchandise item may be raised or lowered either by manual input from an operator  300  as shown in FIG. 1 or by automatically using the “markdown” feature described below with reference to FIG. 14.  
         [0051]    [0051]FIG. 13 illustrates in more detail the step of determining if the bid quantity can be satisfied  94 . If the bid quantity is determined to be less than the available quantity of the merchandise item at step  171 , then the test is found satisfied at step  174 . If not, then the bid is checked at  172  to see if the bidder is willing to accept a reduced quantity. When placing a bid, the bidder indicates its willingness to accept a partial quantity in the event that an insufficient quantity of the item is available to satisfy the bid if successful. If the bidder is found willing to accept a reduced quantity at  172 , then the test is found satisfied at  174 . If not, the test fails at  173  and the bid is marked as unsuccessful at, for example,  99  in FIG. 9.  
         [0052]    The exemplary electronic auction system also includes a “markdown” feature, wherein the electronic auction system awards merchandise to buyers who place orders at the currently posted selling price. The item remains on sale until the available quantity is purchased. If a certain sales volume is not achieved in a specified period of time, the electronic auction system automatically reduces the price by a set amount or a set percentage and updates the merchandise catalog page accordingly. This lower price encourages buyers to take advantage of the new price. If a certain sales volume is exceeded in a specified period of time, the electronic auction system automatically increases the price by a set amount or a set percentage and updates the merchandise page accordingly. These automatic price changes allow the system to respond to market conditions while keeping the prices of the merchandise as high as possible to the seller&#39;s benefit.  
         [0053]    [0053]FIG. 14 illustrates the exemplary Markdown price adjustment feature whereby auction manager  26 , as shown in FIG. 4, periodically adjusts  54  the sales prices or minimum bid prices, of the merchandise items according to a predetermined schedule as shown in FIG. 6. If more merchandise items are found in the merchandise database at  181 , a merchandise item is selected  183  for Markdown. If a Markdown event has occurred for the item, as determined at  184 , the item&#39;s price is adjusted  185  according to the schedule preset for the individual item. Alternatively, the adjustment could be relative to prices offered for the merchandise. The merchandise item is then updated  186  in the database with the new sale price or minimum bid price. The steps of FIG. 14 are then repeated for each successive merchandise item in the merchandise database.  
         [0054]    The exemplary electronic auction system may include a “Proxy Bidding” feature that may be applied to any of the auction formats described above. FIG. 7 fully describes auction manager  26  including the Proxy Bidding feature. When Proxy Bidding is employed, a bidder places a bid for the maximum amount they are willing to pay. The electronic auction system, however, only displays the amount necessary to win the item up to the amount of the currently high proxy bids of other bidders. Typically, the currently high bids display an amount that is one bidding increment above the second highest bid or bids, although a percentage above the second highest bids may be used as well. When a new bidder places a bid that is above a currently displayed high bid, the proxy feature will, in general, cause the currently high bid to move up to an amount higher than the new bid, up to the maximum amount of the currently high bidder&#39;s proxy bid. Once a new bidder places a bid in excess of the currently high bidder&#39;s proxy bid, the new bid becomes the current high bid and the previous high bid becomes the second highest bid. This feature allows bidders to participate in the electronic auction without revealing to the other bidders the extent to which they are willing to increase their bids, while maintaining control of their maximum bid without closely monitoring the bidding. Participation is engaged in automatically on the bidder&#39;s behalf by the inventive system. The feature guarantees proxy bidders the lowest possible price up to a specified maximum without requiring frequent inquiries as to the state of the bidding.  
         [0055]    A variety of different auction formats may be implemented in addition to those described above. The exemplary electronic auction system may, for example, also employ a “Floating Closing Time” feature whereby the auction for a particular item is automatically closed if no new bids are received within a predetermined time interval. This feature would typically be implemented in a manner similar to that used to close auctions of old items, as shown at step  53  in FIG. 6. This feature forces the bidding activity to occur within a shorter amount of time than would otherwise be achieved because bidders are aware that the item will automatically close if no new bids have been received in a timely manner. Thus, bidders have an incentive to stay active in the bidding process to avoid closure of an item before maximum, and most potentially winning, bids have been entered. The Floating Closing Time feature also allows more items to be auctioned during a period of time since each item is closed once bidding activity ceases; the bidding period is not protracted to an artificial length as is the case when an item closes at a preset date and time. The Floating Closing Time feature of the present invention may be employed either in conjunction with or independent of a fixed closing time for an item. When employed in conjunction with a fixed closing time, the auction is closed either when the preset fixed time period has expired for the item or when no bidding activity has occurred within a preset time interval. This forces the bidding to cease at a particular time in case the bidding activity becomes artificially protracted.  
         [0056]    Thus, a method and system for validating a bid are disclosed. A general description of the present invention as well as an exemplary embodiment of the present invention has been set forth above. Those skilled in the art to which the present invention pertains will recognize and be able to practice additional variations in the methods and system described which fall within the teachings of this invention. For example, although the exemplary embodiment of the present invention chooses winning bids according to monetary amount included in the bid, preference for bids may also be determined according to time of submission, quantity of merchandise bid for, total bid value, or some other combination of these characteristics. Accordingly, all such modifications and additions are deemed to be within the scope of the invention which is to be limited only by the claims appended hereto.