Patent EA-002514-B1 (EA)
Title: A system and method for implementing an auction on a computer network
Inventor: KJOLNER EIRIK
IPC: G06Q30/00
Filed: 1998-11-25
Abstract: 1. An arrangement for implementing a computerized auction for auction participants, based upon submittal of stake-supported bids from said auction participants within pre-established time limits, said arrangement possibly comprising a communication network for communication between an auctioneer and said participants, characterized in that it comprises - computer interface means adapted for presenting bids from the participants, - a computer detector means for detecting bids submitted from each participant, - a real or simulated computer clock situated with the auctioneer for marking the start and end times for an auction, recording running auction time as well as time points for bid detection in said computer detector means, and - a computer decision means for deciding on an auction result, the auction result being a function of the bid time points. 2. The arrangement of claim 1, characterized in that said decision means is adapted to test whether a predetermined time period, or a time period variable according to predetermined rules, has passed after the last detected bid without detection of a new incoming bid, and if this is the case, to identify the participant with the last detected bid as an auction winner, and if this is not the case during the total auction duration, to identify the participant having submitted the last bid before the auction end time, as a winner. 3. The arrangement of claim 1, characterized in that said interface means are computer terminals attached to a real time data-transmitting communication network, possibly via modem, and wherein the auctioneer is attached to the same network by means of a computer terminal in a similar manner. 4. The arrangement of claim 3, characterized in that the auctioneer clock, the detector means and the decision means are comprised in an auctioneer computer adapted to manage an auction in accordance with programmed auction algorithms. 5. The arrangement of claim 4, characterized in that the auctioneer computer algorithms are adapted to manage bids submitted in real time from the participants during the course of the auction, and wherein said computer is adapted for possible correction due to transmission delay from the computer terminals of the participants. 6. The arrangement of claims 2 and 5, characterized in that one of said auctioneer computer algorithms is an algorithm for varying the length of said time period as function of elapsed auction time or current bid submittal rate from all participants. 7. The arrangement of claim 5, characterized in that the participant computer terminals and also the communication network are adapted for transmission of real time information from the auctioneer computer, in order to present to each participant the running auction progress and activity. 8. The arrangement of claim 4, characterized in that the auctioneer computer algorithms are adapted to manage bids submitted in a group from each participant within a fixed point of time, so that when this point of time has passed, said computer can immediately simulate the total course of the auction. 9. The arrangement of claim 8, characterized in that the total number of bids during the auction is predetermined, said auctioneer computer algorithms being adapted to manage bids submitted from each participant at the same time as the participant makes entry for the auction/pays the bids. 10. The arrangement of claim 8, characterized in that no limit is set for the total number of bids during the auction, said auctioneer computer algorithms being adapted to manage a) auction entry/payment of bids from each respective participant within a predetermined point of time, b) thereafter calculating the total auction time, i.e. the time span from start to end time, c) establishing a time limit for submittal of grouped bid times, from each respective participant, and (d) subsequent to reception of bids from the participants and expiry of said time limit, simulation of the total course of the auction. 11. The arrangement of any of claims 8-10, characterized in that said auctioneer computer, participant computer terminals and communication network are adapted for transmission of information about the simulated course of the auction to each respective participant, possibly in the form of a screen presentation of the auction course in a real or transformed time scale. 12. The arrangement of claim 7 or claim 11, characterized in that said auctioneer computer is also adapted to transmit, in accordance with special programming, side information to the participant computer terminals, (a) said side information being controlled during real time or simulated auction progress by the auctioneer clock and possibly by the running auction development, for initiating picture/sound presentation or short film of a type which is auction related, entertaining or distracting, next to or "behind" the auction information, in order to increase the auction attraction, and (b) said side information comprising, during phases with entry/payment/pre-bidding, animations containing entertainment or auction related information or possibly advertising. 13. The arrangement of claim 4, characterized in that said auctioneer computer comprises a memory for storing a total auction course, so that a participant may have data concerning said auction course presented in his computer terminal automatically or on request after a finished auction. 14. The arrangement of claim 1, characterized in that at least one participant is a genuine participant and a plurality of participants is a number of simulated participants, the system further comprising auctioneer random generator means controlling said number of and bidding times for simulated participants in accordance with predetermined random generator algorithms, said algorithms containing parameters adjustable so as to tune auction winning probability into a range that is compatible with national law. 15. The arrangement of claim 1 or 2, characterized in that - part of said communication network is any of a public switched telephone network, a cellular network, a computer network and a reverse TV channel network, - said interface means are any of telephones, cellular phones, telefax units, computer terminals, and TV sets having two-way communication capabilities, - the auctioneer broadcasting any of a radio program, a TV program and a Text TV program via another part of said communication network constituted by any of a public radio channel, a TV channel and a closed-circuit network, in which radio/TV/Text TV program real time information is transmitted regarding auction progress. 16. The arrangement of claim 1, characterized in that the interface means are coupons to be completed by each participant and sent to the auctioneer, a coupon containing information about the desired bid time points for the participant in question within a pre-established time frame, and with a number of bids fixed according to rule and according to stake, said detector means is a coupon reader unit, said decision means is a preprogrammed computer attached to said coupon reader unit, and said clock is a simulated clock according to which the bids from the participants are ordered chronologically, said communication network being a public mail network, a telephone network, a telefax network or a computer network. 17. The arrangement of claim 1, characterized in that it comprises auction means for processing the bids communicated from the participants, communicating receipts of said bids and status details of said auction to said participants, and determining a winner of said participants based on said bids received and communicating said winner to said participants; bidder means for distinctly communicating to said auction means distinct said bids from respective said participants and processing said receipts of said bids and said status details of said auction communicated from said auction means; network means for providing communication transmission paths between said auction means and said bidder means, information communicated across said network means between said auction means and said bidder means being under at least one of a first transport protocol and a second transport protocol, said first transport protocol being more reliable than said second transport protocol with respect to insuring that data representative of said information arrives at one of said auction means and said bidder means, said second transport protocol being faster than said first transport protocol with respect to time elapsed for said data to be sent across said network means and received by one of said auction means and said bidder means, wherein risks associated with said information communicated under said second transport protocol include loss of said data during transmission across said network means, arrival of said data at one of said auction means and said bidder means in an order different from a temporal order in which said data were sent from respective one of said bidder means and said auction means, and duplicates of said data arriving at one of said auction means and said bidder means, said risks being an aspect of said auction in respect of said determining said winner of said participants. 18. The arrangement according to claim 17, characterized in that said bids are communicated from said bidder means to said auction means under said second transport protocol. 19. The arrangement according to claim 17, characterized in that said auction means comprises auctioneer means for processing said bids communicated from said bidder means and communicating said receipts of said bids and said status details of said auction to said bidder means, said auctioneer means communicating with said bidder means under said second transport protocol. 20. The arrangement according to claim 19, characterized in that said auction system comprises administrative means for processing accounts of said participants and pr