Patent Publication Number: US-2007100738-A1

Title: Cyclical auction system supporting variable termination

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS  
      This application claims the benefit of U.S. Provisional Patent Application Nos. 60/729,502, filed Oct.  21 ,  2005 , and  60 / 813 , 493 , filed Jun. 13, 2006, both of which applications are incorporated herein by reference. 
    
    
     BACKGROUND  
      Because it facilitates electronic communications between vendors and purchasers, the Internet is increasingly being used to conduct “electronic commerce.” The Internet comprises a vast number of computers and computer networks that are interconnected through communication channels. Electronic commerce refers generally to commercial transactions that are at least partially conducted using the computer systems of the parties to the transactions. For example, a purchaser can use a personal computer to connect via the Internet to a vendor&#39;s computer. The purchaser can then interact with the vendor&#39;s computer to conduct the transaction. Although many of the commercial transactions that are performed today could be performed via electronic commerce, the acceptance and widespread use of electronic commerce depends, in large part, upon the ease of use of conducting such electronic commerce. If electronic commerce can be easily conducted, then even the novice computer user will choose to engage in electronic commerce. Therefore, it is important that techniques be developed to facilitate conducting electronic commerce.  
      The World Wide Web portion of the Internet is especially conducive to conducting electronic commerce. Many web servers have been developed through which vendors can advertise and sell products. The products can include items (e.g., music) that are delivered electronically to the purchaser over the Internet and items (e.g., books) that are delivered through conventional distribution channels (e.g., a common carrier). A server computer system may provide an electronic version of a catalog that lists the items that are available. A user, who is a potential purchaser, may browse through the catalog using a browser and select various items that are to be purchased. When the user has completed selecting the items to be purchased, the server computer system then prompts the user for information to complete the ordering of the items.  
      The World Wide Web is also being used to conduct other types of commercial transactions. For example, some server computer systems have been developed to support the conducting of auctions electronically. To conduct an auction electronically, the seller of an item provides a definition of the auction via web pages to a server computer system. The definition includes a description of the item, an auction time period, and optionally a minimum bid. The server computer system then conducts the auction during the specified time period. Potential buyers can search the server computer system for an auction of interest. When such an auction is found, the potential buyer can view the bidding history for the auction and enter a bid for the item. When the auction is closed, the server computer system notifies the winning bidder and the seller (e.g., via electronic mail) so that they can complete the transaction.  
      Auctions are currently conducted with live audiences in many different industries such as cattle and fine arts. Some of these auctions allow bidders to submit bids via telephone or via some other electronic means. For example, an auction may have a live audience and a telephone audience. The telephone audience may be participants in a conference call with the auctioneer. The members of the live audience can signal their bids visually or orally to the auctioneer. The members of the telephone audience can signal their bids orally by identifying themselves. Some of these auctions have very different formats and requirements from conventional online auctions. For example, certain cattle auctions may auction each lot of cattle at a very fast pace and may also move from lot to lot at a very fast pace. Current techniques for conducting auctions that have a live audience and a non-live audience (e.g., telephone audience) cannot support such a fast pace effectively. 
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       FIG. 1  is an example display page that illustrates a listing of lots of an auction in the cattle industry.  
       FIG. 2  is an example display page that illustrates detailed information about a selected lot at an auction.  
       FIG. 3  is an example display page that illustrates a user interface displayed to a bidder in one embodiment.  
       FIG. 4  is example display page that illustrates detailed information about the current lot that is being auctioned.  
       FIG. 5  is an example display page of a user interface displayed during the active bidding phase.  
       FIG. 6  is a block diagram that illustrates components of the auction system in one embodiment.  
       FIG. 7  is a flow diagram that illustrates the processing of the ASP component of the auction system in one embodiment.  
       FIG. 8  is a flow diagram that illustrates the processing of the sponsor component of the auction system in one embodiment.  
       FIG. 9  is a flow diagram that illustrates the processing of the seller component of the auction system in one embodiment.  
       FIG. 10  is a flow chart that illustrates the processing of a one-button press component of the auction system in one embodiment.  
       FIG. 11  is a flow diagram that illustrates the processing of the one-button network bid component of the auction system in one embodiment.  
       FIG. 12  is a flow diagram that illustrates the processing an apply for auction sponsor component of the auction system in one embodiment.  
       FIG. 13  is a flow diagram that illustrates the processing of a set up auction component of the auction system in one embodiment.  
       FIG. 14  is a flow diagram illustrating the processing of an apply for seller component of the auction system in one embodiment.  
       FIG. 15  is a flow diagram that illustrates the processing of the upload lots component of the auction system in one embodiment.  
       FIG. 16  is a flow diagram that illustrates the processing of a preview and registration component of the auction system in one embodiment.  
       FIG. 17  is a flow diagram that illustrates the processing of an active bidding component of the auction system in one embodiment. 
    
    
     DETAILED DESCRIPTION  
      A method and system for conducting auctions of multiple lots of items is provided. In one embodiment, an auction system allows sponsors to set up auctions for the sale of one or more lots. Each lot consists of one or more items that may be identical (e.g., art prints) or different (e.g., bulls). An auction is set up by its sponsor, who may be the seller of all lots or a third party serving as a broker for one or more sellers. The auction system allows considerable flexibility to a sponsor in defining how the auction should be conducted. For example, an auction can be cyclical in that an auction for lots of a certain type (i.e., commerce category) is conducted on a cyclical basis so that sellers and buyers can prepare for the auctions. An auction can have the bidding on the lots of an auction terminate sequentially or terminate simultaneously. An auction can also be a direct auction or a reverse auction. In addition, an auction can be conducted completely online or have a combination of a live audience and a non-live audience. The auction system provides these and other options for specifying how auctions are to be conducted. In addition, the auction system provides various mechanisms described below for conducting auctions with live and non-live audiences effectively while maintaining the enthusiasm of all audience members. The auction system allows an application service provider to make the auction system accessible to sponsors, sellers, and buyers of auctions. The application service provider can define commercial categories, which may be hierarchically organized, for various auctions. The sponsors of auctions can then use the auction system for the desired commerce categories. Sellers and buyers can then participate in the auctions in the desired commerce categories.  
      The auction system categorizes auctions according to control mode, bid mode, and termination mode. The control mode specifies whether an auction is an online, an external, or a hybrid auction. An external auction is controlled (e.g., the opening bid asked, the amount of each subsequent bid asked, and the decision to close bidding and either sell the article to the last bidder or withdraw the article from the sale) by a human auctioneer. An external auction may also allow bidders, referred to as Internet bidders, to submit bids via the Internet. The auction system may have a server component and a client component. Each Internet bidder interacts with the client component executing on their computer to submit bids. The client component forwards the bids to the server components, which then notifies the auctioneer of the bids. The auctioneer can accept bids from either the live audience or the Internet bidders. In addition, an external auction may have an agent present at the auction who may place bids on behalf of others, such as bidders who transmit standing bids electronically (e.g., via the Internet) to the agent.  
      An online auction is controlled by the auction system according to parameters set by the seller, sponsor, or application service provider prior to the sale. A hybrid auction is an auction that is controlled by the auction system but involves aspects of an external auction. In a hybrid auction, a live audience is present with and can view some of the lots being auctioned. An audience member may place a bid by signaling an agent who enters the bids and may act as an auctioneer in describing the lots and encouraging bidding activity. A hybrid auction may be considered to be a variation of an online auction with an audience entering bids through a single terminal or node.  
      The bid mode of an auction can be direct, reverse, or elastic. Direct and reverse auctions are conventional in that they entail progressive bidding, in which bids are successive and each bid must be higher (or lower, in the case of a reverse auction) than the last and cannot be withdrawn. With the auction system, direct auctions are sponsored by sellers or third-party brokers, and potential buyers bid progressively higher prices. Reverse auctions are sponsored by buyers or third-party brokers, and potential sellers bid progressively lower prices. (In the following, the operation of the auction system is described primarily in terms of sellers and direct auctions, which operations can be adapted to apply to buyers and reverse auctions.) An elastic auction is sponsored by a buyer who wishes to purchase one or more items within one or more lots from one or more sellers. In an elastic auction, bids for any single lot are pending at the same time and any bid for a lot may be entered, raised, lowered, or withdrawn at any time before the bidding closes on the lot.  
      The termination mode of an auction can be unstructured, simultaneous, or sequential. An auction can have multiple lots and each lot can have multiple items. Sellers auction off lots, and bidders place bids to purchase lots. For example, a rancher may want to auction off  500  head of cattle. The rancher may use the auction system to set up an auction with 5 lots with 100 head each or 4 lots with 100 head and 2 lots with 50 head. With unstructured termination, the bidding on each lot can terminate independently of the bidding on the other lots. For example, the bidding can be scheduled to terminate at different times or under different conditions. With simultaneous termination, the bidding for each lot is set to terminate at the same time. Because the bidding terminates at the same time, it would be impractical for an external auction to have multiple lots terminating simultaneously—as it would be difficult for human auctioneers to conduct and bidders to participate in auctions that terminate at the same time. Thus, the auction system may limit simultaneous termination to online or hybrid auctions. With sequential termination, the bidding on the lots is scheduled to terminate one after another. For example, if a sequential auction has 5 lots with a specified sequence, then the bidding on the lots may take place in sequence with the bidding terminating for one lot before the bidding starts for the next lot in the sequence. A sequential auction allows bidders to adjust their bidding patterns based on their success in the bidding on the previous lots.  
      In one embodiment, the auction system provides for cyclical auctions. (Non-cyclical auctions are referred to as ad hoc auctions.) A cyclical auction has a commerce category and an established cycle of recurring times for auctioning lots of items in that commerce category. For example, a cyclical auction may be set up for hogs to take place every Friday at noon, and another cyclical auction may be set up for calves to take place every other Tuesday at 10 AM. An application service provider (“ASP”) who operates the auction system may set up cyclical auctions for various commerce categories and advertise those auctions. For example, one ASP that provides an auction system for the cattle industry may provide a comprehensive set of commerce categories for the cattle industry (e.g., semen and calves). The ASP may define a cyclical auction for each commerce category with a cycle that is tailored to the commerce category. The ASP can then publicize the cyclical auctions to the appropriate area of commerce. Sellers and buyers in that area of commerce (e.g., cattle or antique automobiles) can then plan to participate in the appropriate auctions at the recurring scheduled times. Various sellers can then add lots to the auction that meet the criteria of the auction. The seller may be an organization that has been consigned items to sell.  
      In one embodiment, the auction system allows lots of a cyclical auction that go unsold in one cycle to be automatically added to a subsequent cycle, such as the next cycle, for that cyclical auction. The automatic adding of unsold lots to a subsequent cycle is referred to as automatic renewal. The auction system does not change the lot parameters for an automatically renewed lot. The auction system allows additional lots to be added in between cycles for sale at the next auction cycle and automatically renewed lots to be removed in between cycles. Thus, a cyclical auction may be in progress continually and restocked with lots as necessary.  
      The auction system divides an auction that has been set up into phases. These phases are preview and registration, advance bidding, active bidding, termination, subsequent choices, and payment and delivery. In the preview and registration phase, the auction system allows buyers to register and view information describing the auctions. A buyer who is interested in placing bids at an auction registers for that auction. In the advance bidding phase, the auction system allows buyers to register, if not already registered, and to place standing bids or pre-emptive bids, assuming that they are allowed by the auction. When a standing bid is placed, the auction system automatically places bids on the buyer&#39;s behalf up to the maximum amount indicated by the standing bid. A pre-emptive bid is for an amount for which the seller is willing to immediately sell the lot. Whenever a buyer submits a pre-emptive bid for a lot, the auction system removes that lot from the auction so that it can be sold to the buyer for the pre-emptive bid amount. In the active bidding phase, the auction system allows buyers to register, if not already registered, and to view and actively bid on lots. Buyers may also submit standing bids and pre-emptive bids, assuming they are allowed by the auction. When a buyer places a bid, the buyer may jump the asking price on any lot by manually entering a higher bid amount or by selecting an appropriate bid amount from a displayed list of bid amounts. In the termination phase, the auction system terminates lots according to the termination sequence specified when a sequential termination auction is set up. The termination phase allows for overtime bidding if specified when the auction was set up. In the subsequent choice phase, the auction system allows a seller to accept or reject a high bid that is below a specified minimum bid. Also, one or more buyers may select one or more items of the lot if the auction specifies multi-item or fractionated lots (described below). A seller alternatively may elect to place any unsold items back into inventory or to select another selling method. In the payment and delivery phase, the auction system handles payment processing and shipping arrangements to consummate the sale of the items of the lot to the buyer.  
      Overtime time bidding occurs based on bids placed during a safe harbor period that is during the end of the active bidding phase. If no bid is submitted prior to the safe harbor period but two or more bids are submitted during the safe harbor period, then the bidding continues into overtime. If at least one bid is submitted prior to the safe harbor period and at least one bid is submitted during the safe harbor period, then the bidding continues into overtime. The end of each overtime period may also have a safe harbor period to further extend the bidding into another overtime period. An auction may be set up to allow overtime bidding for all prior bidders on a specified lot or only for those bidders who bid during the safe harbor period (except for the last bidder before the safe harbor period when only one bidder bids during the safe harbor period). The auction system may automatically apply a safe harbor period (e.g., 60 seconds) to any auction with simultaneous or unstructured termination except when the bidding on a lot terminates before the normal bidding time expires (e.g., because of a pre-emptive bid).  
      The auction system may allow hybrid auctions to be single-site or multi-site. In a single-site auction, the auction system broadcasts live audio and video from a single auction location, where a live audience is present. In a multi-site auction, the auction system broadcasts live audio and video from multiple auction locations where live audiences are present. The broadcast may rotate to the various locations. Alternatively, the auction system may broadcast each auction simultaneously so that each auction can display the video from each other auction. The auction system may also allow control of the auction to rotate to agents at each location. The agent with control may be responsible for describing the lots and entering the bids, received locally or from another auction site, into the auction system.  
      The following table provides descriptions of various categories of auctions.  
                                   Name   Description                  Ad hoc, unstructured termination   an online auction without a live audience, that is not cyclical, and           where lots terminate individually as sold       Ad hoc, simultaneous termination   an online auction without a live audience, that is not cyclical, and           where the active bidding phase of each lot ends at the same time       Ad hoc, sequential termination   an online auction without a live audience, that is not cyclical, and           where the active bidding phase of each lot ends sequentially at           established times       Cyclical, simultaneous termination   an online auction without a live audience, that is cyclical with           automatic renewal and with adding of lots between cycles, and           where the active bidding phase of each lot ends at the same time       Cyclical, sequential termination   an online auction without a live audience, that is cyclical with           automatic renewal and with adding of lots between cycles, and           where the active bidding phase of each lot ends sequentially at           established times       Hybrid, ad hoc, single site   an online auction with a live audience at one location, that is not           cyclical, and where the active bidding phase of each lot ends           sequentially at established times       Hybrid, cyclical, single site   an online auction with a live audience at one location, that is cyclical           with automatic renewal and with adding of lots between cycles, and           where the active bidding phase of each lot ends sequentially at           established times       Hybrid, ad hoc, multi-site   an online auction with a live audience at multiple locations, that is           not cyclical, and where the active bidding phase of each lot ends           sequentially at established times       Hybrid, cyclical, multi-site   an online auction with a live audience at multiple locations, that is           cyclical with automatic renewal and with adding of lots between           cycles, and where the active bidding phase of each lot ends           sequentially at established times       External, single site, sequential   a live auction at one location where the auctioneer controls the       termination   auction, where bids may be submitted online, and where the active           bidding phase of each lot ends sequentially at established times       External, reverse node   a live auction at one location where the auctioneer controls the           auction, where bids may be submitted online and an agent visually           relays standing bids and changes to standing bids submitted by the           Internet audience to the auctioneer, and where the active bidding           phase of each lot ends sequentially at established times                  
 
      The auction system may allow agents to perform various functions on behalf of others. A function of an agent may be to relay bids submitted by others. At an online auction, an agent relays bids by receiving bids from a live or telephone audience and entering the bids at the online auction using a computer of the auction system (referred to as a node). At an external auction, an agent can relay bids, typically standing bids, received from bidders who submit bids via a computer. The agent views the bids at the auction site using a computer of the auction system (referred to as a reverse node) and conveys those bids visually or orally to the auctioneer.  
      The auction system allows a bidder who wants to purchase a bidder-specified maximum number of lots to place standing bids for any number of lots up to the number of lots in the auction. The bidder assigns a priority order to lots with the standing bids and the specified maximum number of lots to purchase. For example, if an auction has 10 lots designated as lots A-J, a bidder may want to purchase at most 4 lots. In such a case, the bidder may request to place standing bids on 6 lots, A, B, C, D, G, and J. The bidder may assign a priority order to the lots of D, G, B, A, J, and C, meaning that the bidder would rather purchase lots D, G, B, and A, but purchasing lots J and C would be acceptable. The auction system ensures that the bidder has placed the current highest bid in no more than the specified maximum number of lots to purchase. The auction system places standing bids for those lots in priority order. A standing bid remains in effect until the bidder wins the lot or the standing bid is superseded by another bid. If a standing bid is superseded, then the auction system places another standing bid for a different lot on behalf of the bidder in priority order. After the termination of all lots (either simultaneously or sequentially), the bidder will have won no more than the maximum number of lots. Continuing with the example, in an auction with simultaneous termination, the auction system places standing bids for lots D, G, B. and A, initially. If the standing bid for lot G is superseded by another bidder&#39;s bid, the auction system places a standing bid for lot J (assuming the current highest bid for lot J is not already higher than the standing bid). At the termination of the auction, the bidder may have won no lots or any combination of four or fewer lots A, B, C, D, G, and J.  
      An external auction uses an auctioneer who interacts with the audience by describing the lots for sale, calling out the current bid, deciding on the asking price for the next bid, and calling out for and accepting bids at higher and higher levels. The auctioneer also closes the bidding when no higher bids are forthcoming. The auctioneer is in control of the auction and keeps the auction moving.  
      The auction system may extend the environment of being present at an external auction to Internet bidders who are not present at the auction location. The auction system provides a client component, referred to as an active bidding monitor, that extends the environment by letting the Internet bidders both see and hear bidding activity. The client component automatically updates the current bid and the asking bid as lots are viewed, uses sound effects to indicate changes in bid level and whether the viewer is in the lead, and uses graphics to show the number of bids received at each bid level. Since the bidding at a live auction may occur rapidly with bids increasing by differing increments depending on the auctioneer&#39;s assessment of bidding activity, it may be difficult for the auction system to display the current bid and the asking bid in real time to the Internet bidders. Nevertheless, as described below, the auction system can notify Internet bidders in real time (e.g., audibly or visually) when a bid is accepted and a new asking bid is established and when the Internet bidder&#39;s own bid was accepted. The auctioneer may, in addition to describing the lots and soliciting bids, comment about the relative numbers of bids coming from the live and Internet audiences. The client component may include graphics to depict the current phase and the time remaining.  
      The auction system may provide an auctioneer with one button or two buttons to signal the auction system that a bid has been accepted so that the auction system can then notify the Internet bidders. The buttons are typically placed in view of the live audience. When the auction system provides one button, it has a light and the auctioneer pushes the button to accept a bid. The light on the button indicates whether a bid has been received from an Internet bidder at the current asking bid. Whenever the auction system receives a bid at the current asking bid from an Internet bidder, the auction system will light the button. If the button is unlighted when pushed by the auctioneer, then the auctioneer has accepted a bid from the live audience. If the button is lighted when pushed by the auctioneer, then the auctioneer has accepted a bid from an Internet bidder. The auction system unlights the button whenever it is pushed (if lighted), and the process restarts at the new current asking bid. When a bid is accepted from an Internet bidder, the auction system sends an “acceptance” sound to the bidder whose bid was accepted (i.e., the first bidder at the previous current asking bid) and sends a “new asking bid” sound to all the other Internet bidders. The sounds will inform the Internet bidders whether their bid was accepted and will warn them to listen to the audio of the auction for the new asking bid. Once the button is lighted, the auctioneer cannot accept the bid from the live audience by pressing the button as it will signal to accept the bid from the Internet audience.  
      The auction system provides two buttons to give an auctioneer the ability to accept a bid from the live audience even though a bid from an Internet bidder has been received. The auction system provides one button with a light, referred to as the Internet audience button, and another button without a light, referred to as the live audience button. The auctioneer pushes the live audience button to signal acceptance of a bid from the live audience and pushes the Internet audience button to signal acceptance of a bid from the Internet audience. The auction system lights up the Internet audience button whenever a bid is received from an Internet bidder at the current asking bid. When the Internet button is lighted, the auctioneer has the option of not accepting the Internet bid. The live audience will be able to see the light and know that a bid from the Internet audience has been received. The auctioneer may not immediately accept the Internet bid in hopes of stimulating bidding activity within the live audience. If only audio is transmitted to the Internet bidders, they may not know that a bid has been placed (except possibly for the Internet bidder who placed the bid). The auction system could, however, play an auxiliary sound to the live audience so that the Internet audience will know that an Internet bid has been placed. Whenever the auctioneer accepts a bid as signaled by pushing a button, the auction system unlights the Internet audience button (if lighted) and sends an acceptance sound or a new asking bid sound to the Internet bidders as described above. The auction system could alternatively send two different new asking bid sounds to the Internet audience to distinguish whether the new asking bid is a result of a bid placed by the live audience or by the Internet audience.  
      In the time delay between when an Internet bidder places a bid at the current asking bid and when the auction system receives notification of the bid, the auctioneer may have accepted another bid at the current asking bid (e.g., from the live audience or another Internet bidder). The auction system may be implemented using a client/server model, where an auction server communicates with the auction clients of the Internet bidders. Since the Internet bidder&#39;s computer will not be provided with the asking bids, the bid sent by an Internet bidder will only indicate a desire to place a bid at what the bidder believes is the current asking bid, but will not include that asking bid, which the Internet bidder may only know of by listening to the audio of the auction. The auction system uses “bookmarks” to track whether an Internet bid is for the current asking bid or for a previous asking bid. A bookmark includes a time indicating the time when the asking bid changed. Whenever a bid is accepted as indicated by the auctioneer pressing the button, the auction server establishes a new bookmark to indicate the time of the new asking bid. The auction server also sends the bookmark to the computer of each Internet bidder. Whenever an Internet bidder places a bid, the bidder&#39;s auction client sends to the auction server a notification of the bid that includes the last received bookmark. When the auction server receives the notification of the bid, it compares the received bookmark to the current bookmark. If they are the same, then the Internet bid is for the current asking bid and the auction server lights up the button to indicate that an Internet bid has been received. If they are not the same, then the Internet bid is for an out-of-date asking bid and the auction server discards the bid.  
      The auction system may allow an auction to specify that the items in a lot may be sold to different bidders, referred to as a fractionated lot. Normally, all items in a lot are sold to the winning bidder. The way in which the items of a fractionated lot are sold may depend on whether the items in the lot are identical. For example, if the items are identical (e.g., limited edition art prints), the seller may wish to auction off a certain number of items to the highest bidder(s) and then sell the remaining items for a fixed price. As another example, if the items of the lot are not identical (e.g., bulls), then after the bidding terminates bidders are allowed to select the items of the lot they want to purchase with the highest bidder selecting first and proceeding in bid order until all the items are purchased or the bids are exhausted. Each bidder may be allowed to select one or more items depending on how the auction is set up. The purchase price for each bidder may be their actual bid amount, the bid amount of the lowest winning bidder, an average amount of the winning bids, and so on.  
      The auction system may use listing templates to allow sponsors to provide information on their lots that will be available to bidders. An ASP may set up an auction with templates that define the minimum information that a sponsor needs to provide with adding a lot to the auction. This minimum information may be used to help ensure that lots will meet the minimum criteria of the auction (e.g., cattle under two years old). The auction system may allow a sponsor to provide supplemental information that may be restricted to certain viewers (e.g., the ASP or viewers who pay a premium). During an auction a lot is described or specified by the information appearing in the listing template and the supplemental information. The templates may be used for entity tracking without any association with an auction. For example, a potential seller may create inventories of pre-sale lots that each consist of one listing with supplemental information for individual animals or groups of animals before deciding how and when to sell them. Thus, the auction system allows sellers to define tentative sale groups. For example, a rancher may create a group as early as calving season, although no calves will be auctioned until weaning and although some may be retained for months or even years thereafter. Over time, the listings and supplemental information of these pre-sale lots may be revised with new information or with changed plans. Pre-sale lots may be used for entity tracking and source verification apart from, or in preparation for, commercial transactions, such as an auction.  
      The auction system allows elastic auctions to be set up. An elastic auction may be used to sell any commodity (e.g., feed cattle or processed beef), in which all lots (quantities) generally have the same. Such commodities may include, by way of example and without limitation, fed cattle and processed beef. The auction system supports elastic auctions so the buy-sell contract can be arranged. For example, a sponsor who wants to purchase processed beef may set up an elastic auction. Each bidder creates one or more lots of processed beef with a specified quantity to be offered for sale. Each lot remains within the control of the bidder who created it. A bidder places a bid for their lot and, if permitted, may change the specified quantity and raise, lower, or withdraw a bid any time prior to closing.  
      An elastic auction uses simultaneous termination for the lots. After closing of all lots, the sponsor selects the lots representing the desired combination of total quantity without necessarily specifying the total quantity prior to the auction. A buy-sell contract is thereby created for the purchase of the selected lots and the average price (or some other price derived from the bids, such as the bid of each selected lot). If a sponsor has been unable to buy a desired quantity because of a maximum purchase price specified when the auction was set up, the sponsor may elect during the subsequent choice phase to accept one or more lots priced above that maximum purchase price. The sponsor may also elect to extend the auction and raise the maximum price if bidders did not offer lots with enough items to satisfy the desired quantity of the sponsor.  
      The auction system allows a sponsor or consignor to specify different user interface layouts so that the appropriate information regarding a particular lot can be displayed to bidders prior to and during an auction. The sponsor-defined user interface is particularly important in an auction with sequential termination. With such an auction, a bidder needs sufficient information to make a decision whether to place a bid based on the previous bid at the auction and the lots yet to be auctioned. The auction system defines sectors that each display different types of information about the auction. A sponsor or consignor can supply specified information to the multiple sectors that are visible to bidders and that are coordinated with the selected lot. Different sector layouts may be chosen by the auction sponsor as desired and may include some combination of an active bid monitor sector; a video sector for slide shows; prerecorded video, and/or live video; one or more advertising sectors; a listing sector with background information; and a supplemental information sector for display of additional data not included in the listing.  
       FIG. 1  is an example display page that illustrates a listing of lots of an auction in the cattle industry. Display page  100  contains various tabs such as the all lots tab  101  and contains a listing area  102  that lists the lots of various auctions of the sponsor. The auctions include lots in different commercial categories of the cattle industry such as bulls, embryos, and semen. A user can select a lot to view more detailed information about the items within the lot. The auction system also allows the user to record interest in a lot as indicated by a check mark  103 . The auction system allows the user to search for and view lots that have been marked of interest.  
       FIG. 2  is an example display page that illustrates detailed information about a selected lot at an auction. Display page  200  contains various tabs  201  and sub-tabs  202 . In this example, the all lots tab and the listing sub-tab are selected. The display page contains a listing area  203  that contains detailed information relating to the selected lot. The display page includes additional sub-tabs such as a supplement and a history sub-tab that provide more detailed information about the items in the lot. The display page includes a sequence and catalog button area that allows the user to select the next sequence number or catalog number for the sponsor. The sequence number corresponds to the order in which the lots will be auctioned.  
       FIG. 3  is an example display page that illustrates a user interface displayed to a bidder in one embodiment. Display page  300  includes a standing bid area  301 , a current bid area  302 , an asking bid area  303 , a buy now area  304 , a jump bid area  305 , a calendar area  306 , and a bar chart graphic area  307 . The standing bid area allows a user to input or change a standing bid. The current bid area displays the current highest bid while the auction is active. The asking bid area lists the current asking bid at the auction. When a user selects the regular bid button of the asking bid area, a bid is placed on behalf of the user for the asking bid. The jump bid area allows the user to enter a bid other than the current asking bid. A user may click on one of the numbers listed in the jump bid area or may manually enter a dollar amount and select the jump bid button. The calendar area displays a calendar with the dates of various phases of the auction and dates of other auction events. In this example, the advance bidding phase begins on Apr. 22, the active bidding phase begins on Apr. 25, and the termination phase occurs on Apr. 29. The bar chart graphic area displays a bar chart that illustrates graphically how bidding has progressed during the active bidding phase. The open indicator indicates the minimum amount of the opening bid, and the floor indicator indicates the minimum amount that the seller is willing to accept to sell the lot. As the bidding progresses the auction system fills in the bar chart to indicate the increasing current bid.  FIG. 4  is an example display page that illustrates detailed information about the current lot that is being auctioned. Display page  400  is displayed when the user selects to view additional information about the lot that is currently being auctioned. The user can select one of the sub-tabs to view even more detailed information about the lot.  
       FIG. 5  is an example display page of a user interface displayed during the active bidding phase. Display page  500  includes a standing bid area  501 , a current bid area  502 , an asking bid area  503 , a jump bid area  504 , a bar chart graphic area  505 , and a pie chart graphic area  506 . The standing bid area, the current bid area, the asking bid area, and the jump bid area work as described above with reference to  FIG. 3 . The bar chart graphic area contains an average indicator that indicates the average price for similar lots and a high indicator that indicates the highest price paid for similar lots. The pie chart graphic area contains a regular time area  507 , a fair warning area  508 , and a time to next lot area  509 . The areas of the pie chart represent time and are filled in by the auction system as time of the auctioning of the current lot elapses. In addition, the auction system displays an arrow at the perimeter of the pie chart to indicate the timing of each received bid. The fair warning area represents the safe harbor period as described above. Each time the auction is extended into overtime, the perimeter of the fair warning area is increased. A safe harbor area  511  indicates the safe harbor period. Extended circumference areas  512  and  513  indicate a first overtime and a second overtime. As indicated by the arrows in the safe harbor area and each extended circumference area, multiple bidders placed bids during those periods.  
       FIG. 6  is a block diagram that illustrates components of the auction system in one embodiment. The auction system  600  is connected to various computing devices  631 - 637  via communications link  620 . The computing devices include a sponsor computing device  631 , a seller computing device  632 , a buyer computing device  633 , an agent node computing device  634 , an agent reverse node computing device  635 , an auctioneer computing device  636 , and an ASP computing device  637 . Each computing device supports the functions needed by the sponsor, seller, buyer, and so on. The auction system  600  includes an ASP component  601 , a sponsor component  602 , a seller component  603 , a commerce category data store  604 , an auction data store  605 , a lot data store  606 , a registration data store  607 , an auxiliary data store  608 , a conduct auction component  609 , and various phase components (not shown). The ASP component allows an application service provider to define commerce categories and requirements of various auctions that can be set up by the auction system. The sponsor component allows an auction sponsor to define an auction within various commercial categories and to specify the requirements of that auction. The seller component allows a seller to upload descriptions of lots to be sold at an auction set up by the sponsor. The auction system may also include a buyer component that operates in a way similar to the seller component in the case of a reverse auction. The commerce category data store includes a hierarchical representation of the commerce categories defined by the application service provider. The commerce category data store may also store information specifying how auctions in the various commerce categories are to be conducted and presented to users. The auction store contains an entry for each auction that has been set up by a sponsor and identifies the requirements and other attributes of the auction as specified by the sponsor. The lot store contains a description of the lots that have been specified by various sellers. The lot store may contain a description of the items along with the listing information and supplemental information along with information on how the auction is to be conducted (e.g., pre-emptive bidding allowed). The registration data store may contain an entry for each sponsor, seller, and buyer who is registered to use the auction system. The auction system may require users to register before bidding at each auction. The auxiliary data store contains additional information on the various lots such as video of the animals to be auctioned. The conduct auction component controls the overall conducting of an auction such as accepting bids at an online auction or signaling bids of network bidders at an external auction.  
      The computing device on which the auction system is implemented may include a central processing unit, memory, input devices (e.g., keyboard and pointing devices), output devices (e.g., display devices), and storage devices (e.g., disk drives). The memory and storage devices are computer-readable media that may be encoded with computer-executable instructions that implement the auction system. In addition, the data structures and message structures may be stored or transmitted via a data transmission medium, such as a signal on a communications link. Various communications links may be used, such as the Internet, a local area network, a wide area network, or a point-to-point dial-up connection.  
      The auction system may be implemented in various operating environments. Various well-known computing systems, environments, and configurations that may be suitable for use include personal computers, server computers, hand-held or laptop devices, multiprocessor systems, microprocessor-based systems, programmable consumer electronics, network PCs, minicomputers, mainframe computers, distributed computing environments that include any of the above systems or devices, and the like.  
      The auction system may be described in the general context of computer-executable instructions, such as program modules, executed by one or more computers or other devices. Generally, program modules include routines, programs, objects, components, data structures, and so on that perform particular tasks or implement particular abstract data types. Typically, the functionality of the program modules may be combined or distributed as desired in various embodiments.  
      The following flow diagrams illustrate the high-level functional processing of various components of the auction system.  
       FIG. 7  is a flow diagram that illustrates the processing of the ASP component of the auction system in one embodiment. The component allows an application service provider to define commercial categories of auctions that the auction system will support along with the requirements of those auctions. In block  701 , the component selects the next commercial category defined by the application service provider. In decision block  702 , if all the commercial categories have already been selected, then the component completes, else the component continues at block  703 . In block  703 , the component receives from the ASP the requirements of the items in the selected commercial category. In block  704 , the component receives from the ASP the requirements of the auctions for the selected commercial category. In block  705 , the component receives from the ASP an indication of the user interface components to make available to the auction sponsors for the selected commercial category. For example, the ASP may indicate that an auction sponsor can specify a user interface feature for displaying a video relating to an item to be auctioned. The component then loops to block  701  to select the next commercial category.  
       FIG. 8  is a flow diagram that illustrates the processing of the sponsor component of the auction system in one embodiment. The sponsor component allows a sponsor to set up an auction whose attributes comply with the requirements of the ASP. For example, an ASP may not allow reverse auctions. In block  801 , the component receives from the sponsor a selection of a commercial category. In block  802 , the component inputs a description of the auction including its attributes. The component ensures that the auction description is consistent with the requirements of the ASP. In block  803 , the component inputs the requirements of the lots of the auction. The auction system ensures that lots uploaded by sellers comply with these requirements. For example, a requirement of a lot may be that a lot contain no more than 10 items. The component then completes.  
       FIG. 9  is a flow diagram that illustrates the processing of the seller component of the auction system in one embodiment. The component allows a seller to upload a lot for an auction. In block  901 , the component allows the seller to select a commercial category. For example, a user may select a commercial category of processed cattle. In block  902 , the component allows the user to select an auction within the selected commercial category. In block  903 , the component inputs from the seller the specification of a lot for the selected auction. In block  904 , the component inputs from the user the specification of the attributes for auctioning the lot. For example, one attribute may be a pre-emptive bid amount or a minimum bid amount. The component then completes.  
       FIGS. 10 and 11  illustrate the operation of an external auction with network bidders in a one-button environment.  FIG. 10  is a flow chart that illustrates the processing of a one-button press component of the auction system in one embodiment. The component is invoked during an external auction whenever the auctioneer presses the button. In block  1001 , the component records a new bookmark with a time stamp. In block  1002 , the component turns off the light of the button. In block  1003 , the component sends the new bookmark to each network bidder. In decision block  1004 , if the network bid flag is set indicating that a bid was received from a network bidder, then the component continues at block  1005 , else the component continues at block  1008 . In block  1005 , the component notifies the winning network bidder with the appropriate winning bid sound. In block  1006 , the component notifies the other network bidders with the appropriate new asking bid sound. In block  1007 , the component clears a network bidder flag and then returns. In block  1008 , the component notifies all the network bidders with the new asking bid sound and then returns.  
       FIG. 11  is a flow diagram that illustrates the processing of a one-button network bid component of the auction system in one embodiment. The component is invoked when a network bid is received. In decision block  1101 , if the network bid flag is set, then the auction system has already received a network bid at the current asking bid and the component discards the bid and returns, else the component continues at block  1102 . In decision block  1102 , if the received bookmark matches the current bookmark, then the received bid is for the current asking bid and the component continues at block  1103 , else the component discards the bid and returns. In block  1103 , the component records the network bidder&#39;s identity. In block  1104 , the component sets a network bid flag to indicate that a bid from a network bidder has been accepted. In block  1105 , the component turns on the light on the button and then returns.  
       FIGS. 12-17  illustrate more detailed processing of the sponsoring of an auction.  FIG. 12  is a flow diagram that illustrates the processing of an apply for auction sponsor component of the auction system in one embodiment. The component is invoked when a user wants to sponsor an auction. In block  1201 , the component inputs auction information from the sponsor. In block  1202 , the component stores the auction information in the auction database (the data stores of  FIG. 6 ). In block  1203 , the component receives a request from the sponsor to submit the sponsorship for approval. In block  1204 , the component notifies the ASP that a sponsor has requested approval of an auction. The notification may be sent via electronic mail to the ASP. The component then returns.  
       FIG. 13  is a flow diagram that illustrates the processing of a set up auction component of the auction system in one embodiment. The component is invoked when a sponsor wants to set up an auction. The component ensures that the auction has been approved by the ASP and inputs the requirements and attributes of the auction. In decision block  1301 , if the auction is approved, then the component continues at block  1302 , else the component completes. In block  1302 , the component inputs the start and end time of each phase of the auction. In block  1303 , the component stores those times in the auction database. In block  1304 , the component inputs the requirements of all the lots of the auction and then continues at block  1305 . In block  1305 , the component stores the requirements in the auction database and then completes.  
       FIG. 14  is a flow diagram illustrating the processing of an apply for seller component of the auction system in one embodiment. The component is invoked when a seller wants to apply for approval to upload lots to an auction. In block  1401 , the component inputs information on the seller. In block  1402 , the component stores the information in the auction database. In block  1403 , the component notifies the sponsor of the request to add lots to the auction. In block  1404 , the component receives an approval from the sponsor. In block  1405 , the component stores the approval indication in the auction database and then completes.  
       FIG. 15  is a flow diagram that illustrates the processing of the upload lots component of the auction system in one embodiment. The component is invoked when a sponsor or an approved seller wants to upload a lot to an auction. In decision block  1501 , if the user is the auction sponsor or an approved seller, then the component continues at block  1502 , else the component completes. In blocks  1502 - 1505 , the component loops inputting a selection of whether the user wants to continue adding lots to the auction. In block  1502 , the component receives the selection from the user. In decision block  1503 , if the user wants to continue adding lots, then the component continues at block  1504 , else the component completes. In block  1504 , the component inputs a description of the lot. In block  1505 , the component stores the description of the lot in the auction database and then loops to block  1502  to select the next user selection.  
       FIG. 16  is a flow diagram that illustrates the processing of a preview and registration component of the auction system in one embodiment. The component allows a potential buyer to preview auctions and register for the auctions. In block  1601 , the component presents a preview of auctions to a buyer. In block  1602 , the component inputs a selection of an auction from the buyer. In block  1603 , the component inputs an action that the buyer wants to take relative to the selected auction. In decision block  1604 , if the action is a buy now or pre-emptive bid action, then the component continues at block  1605 , else the component continues at block  1606 . In block  1605 , the component consummates the sale of a selected lot and updates the auction database and then completes. In decision block  1606 , if the action is to place a standing bid, then the component continues at block  1607 , else the component continues with any other possible actions. In block  1607 , the component stores the standing bid in the auction database and then completes.  
       FIG. 17  is a flow diagram that illustrates the processing of an active bidding component of the auction system in one embodiment. The component is passed an auction identifier and conducts an auction for a lot of that auction. In decision block  1701 , if the auction is active, then the component continues at block  1702 , else the component completes. In block  1702 , the component displays the status of the lots to a user. In block  1703 , if a user action is input, then the component continues at block  1704 , else the component continues loops to block  1701 . In decision block  1704 , if the user action is to place a bid, then the component continues at block  1705 , else the component continues at block  1706 . In block  1705 , the component updates the asking bid and establishes a new current bid and then loops to block  1701 . In decision block  1706 , if the user action is to place a standing bid, then the component continues at block  1707 , else the component continues at block  1708 . In block  1707 , the component updates the current bid and stores the standing bid for the user and then loops to block  1701 . In decision block  1708 , if the user action is to buy now, then the component continues at block  1709 , else the component continues processing any possible further actions by the user. In block  1709 , the component terminates the lot and consummates the sale with the user and then loops to block  1701 .  
      From the foregoing, it will be appreciated that specific embodiments of the invention have been described herein for purposes of illustration, but that various modifications may be made without deviating from the spirit and scope of the invention. Accordingly, the invention is not limited except as by the appended claims.