Patent Abstract:
In both an on-line and a conventional auction, an auctioneer may encourage competitive bidding behavior through the provision of rewards to those bidders whose bids meet predetermined criteria. For example, a bidder may be rewarded if her bid exceeds a prior bid by a threshold value. An auctioneer may further discourage non-competitive bidding behavior by penalizing those bidders whose bids fall below predetermined standards.

Full Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
     The present application is a continuation application of U.S. patent application Ser. No. 09/223,901, filed Dec. 31, 1998, entitled “METHOD AND APPARATUS FOR ENCOURAGING COMPETITIVE PARTICIPATION IN AN AUCTION”; which is incorporated by reference herein in its entirety. 
     This application is related to U.S. patent application Ser. No. 08/943,483 entitled “SYSTEM AND METHOD FOR FACILITATING ACCEPTANCE OF CONDITIONAL PURCHASE OFFERS (CPOs)” to Jay S. Walker, Daniel E. Tedesco, James A. Jorasch and Andrew S. Van Luchene filed on Oct. 3, 1997, the entirety of which is incorporated herein by reference. 
     This application is also related to U.S. patent application Ser. No. 11/456,241 filed Jul. 10, 2006, entitled “SYSTEM AND METHOD FOR ENCOURAGING COMPETITIVE PARTICIPATION IN AN AUCTION”; which is incorporated by reference herein in its entirety. 
    
    
     FIELD OF THE INVENTION 
     The present invention relates to auctions, and relates more particularly to systems and methods for rewarding or penalizing bidders whose bidding behavior during an auction session meets predetermined standards. 
     BACKGROUND OF THE INVENTION 
     Auctioning has been an accepted method for selling products and services since the early 1700&#39;s. Since that time, traditional auctions have been conducted in auction houses where bidders would gather and compete face-to-face for the purchase of a particular item. Such traditional auctions typically offer luxury items or antiques, whose prices command a large profit. Thus, only those persons who can afford such “high ticket” items participate in traditional auctions. Also, since most auction houses are located in large cities such as London or New York, traditional auctions usually attract only those persons living near or having the means to travel to these auction houses. Such auctions are further limited to those people who are willing to pay the price of admission to the auction house. 
     With the development of world-wide communications systems, auctions have evolved to include bidding via telephone and video-conferencing, thus overcoming the barrier imposed by travel. However, these auctions are still typically limited to high ticket items, thus attracting only a small proportion of the general public. 
     In recent years, and particularly with the advent of the Internet, auctioning has enjoyed increased attention and participation from the population at large. This is demonstrated by the success of such on-line Internet auctioning companies as EBAY and ONLINE.COM. These Internet auction companies allow for items of any value to be placed for bid on their web sites. Each item submitted for sale is assigned an auction session, which includes a starting time (or opening) and a closing time. Bids are then accepted electronically as long as the auction session is open. At the close of the auction session, the item is awarded to the highest bidder. 
     Although on-line auctioning has succeeded in attracting large-scale, daily participation in auctioning, the Internet environment has inadvertently eliminated some of the benefits enjoyed by traditional auctioning. For instance, the competitive bidding generated by face-to-face competition has been hampered, since on-line bidders usually are remotely located from each other. Furthermore, because the bidders in an on-line auction are not physically present at the auction site, they may not become instantly aware of higher bids submitted by other subsequent bidders. 
     Another drawback to on-line auctioning is the frequent submission of unreasonably low bids during an auction session. These bids are typically submitted by bidders who are not serious about obtaining the item being auctioned or who anticipate that no reasonable bids will be submitted. Such bidding behavior is a waste of an auctioneer&#39;s resources, since such unreasonable bids are rarely accepted. However, since there is no face-to-face interaction among on-line bidders, there is little incentive for a bidder to refrain from submitting unreasonably low bids. 
     Thus, a need exists to encourage competitive bidding and to discourage unreasonable bid submissions in an on-line auction environment. 
     SUMMARY OF THE INVENTION 
     Generally, according to the instant invention, systems and methods are disclosed for encouraging competitive bidding behavior during an auction session. Such systems and methods are advantageous in that they encourage competitive bidding by providing rewards to bidders whose bidding behavior meets predetermined criteria. Additionally, non-competitive bidding may be discouraged through the institution of penalties when bidding behavior falls below predetermined standards. 
     According to a first aspect of the present invention, a system and method for providing a reward to a bidder participating in an auction includes: identifying a product subject to bidding during an auction session; receiving a bid for the product from a bidder during the auction session; determining, based on a reward rule, whether the bidder is qualified to receive a reward; and if the bidder is qualified, transmitting, to the bidder, an indication that the bidder is qualified to receive the reward. 
     According to a second aspect of the present invention, a system and method for providing a penalty to a bidder participating in an auction includes: identifying a product subject to bidding during an auction session; receiving a bid for the product from a bidder during the auction session; determining, based on a penalty rule, whether the bidder is to receive a penalty; and if the bidder is to receive the penalty, transmitting, to the bidder, an indication that the bidder is to receive the penalty. 
     According to a third aspect of the present invention, a system and method for participating in an auction session includes: receiving an identification of a product subject to bidding during an auction session; transmitting a bid for the product to an auctioneer during the auction session; and receiving a reward in response to the bid. 
     According to a fourth aspect of the present invention, a system and method for participating in an auction session includes receiving an identification of a product subject to bidding during an auction session; transmitting a bid for the product to an auctioneer during the auction session; and receiving a penalty in response to the bid. 
     Further descriptions of the present invention are disclosed hereinbelow. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
       A more complete understanding of the present invention, as well as further features and advantages thereof, will be obtained by reference to the following detailed descriptions when read in conjunction with the accompanying figures, of which: 
         FIG. 1  is a block diagram illustrating a network over which an auction in accordance with the present invention may be conducted; 
         FIG. 2  is a block diagram illustrating the components of an auction server depicted in  FIG. 1 ; 
         FIG. 3  depicts an exemplary auction inventory database stored in the auction server of  FIG. 1 ; 
         FIG. 4  depicts an exemplary current auction database stored in the auction server of  FIG. 1 ; 
         FIG. 5  is an exemplary bidder database stored in the auction server of  FIG. 1 ; 
         FIG. 6  depicts an exemplary offer rules database stored in the auction server of  FIG. 1 ; 
         FIG. 7  depicts an exemplary reward rules database stored in the auction server of  FIG. 1 ; 
         FIG. 8  is a flowchart illustrating the steps performed by the auction server of  FIG. 1  during an exemplary offer determination process of the present invention; 
         FIG. 9  is a flowchart illustrating the steps performed by the auction server of  FIG. 1  in accordance with an exemplary reward process of the present invention; and 
         FIGS. 10A-10B  are a flow chart illustrating the steps performed by the auction server of  FIG. 1  in accordance with an exemplary multiple bidder reward process of the present invention. 
     
    
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS 
     Definitions 
     The following words shall be construed to have the following meanings within the context of the present disclosure:
         Auction: a public sale, conducted live or through an electronic network such as a telecommunications system or the Internet, in which products or services are sold to the highest bidder.   Bidder: a participant in an auction.   Buyer: the winning bidder in an auction.   High Bid: the bid provided by a bidder which currently exceeds the value of all other submitted bids.   Greatest Bid: the high bid at the close of the auction   Bid Spread: the difference in pecuniary value between two submitted bids.       

     Preferred Embodiments 
     Referring now to  FIG. 1 , an on-line auction system  100  includes an auction server  102 , a third party terminal  106 , a payment processing server  108  and one or more bidder terminals  110 , each connected through network  104 . Auction server  102  is preferably operated by an on-line auctioneer, and may be any type of conventional computer or computing system that includes the components described below in reference to  FIG. 2 . Likewise, third party terminal  106 , payment processor  108  and bidder terminals  110  may each be any conventional type of computer or computing system, such as an IBM personal computer or an IBM network server. Network  104  may be any type of network through which computers may communicate, such as a local-area network (LAN), a wide-area network (WAN), an intranet system, a public telephone exchange system, the Internet or any combination thereof. 
     Third party terminal  106  is preferably operated by a party other than the auctioneer or a bidder. A third party, in the present disclosure, offers a reward to qualified bidders participating in an auction held by the auctioneer, as discussed further below. Payment processor  108  is preferably operated by a financial clearinghouse, such as a credit card clearinghouse, which is equipped to process, inter alia, payments from the bidder to the auctioneer. Bidder terminals  110  are preferably operated by one or more bidders participating in an auction conducted through auction server  102 . 
     It is to be understood that in an embodiment where the present invention is practiced in other than an on-line auction system, auction server  102 , third party terminal  106 , payment processing server  108  and/or bidder terminals  110  may be replaced by their respective operating parties, described above. In such case, network  104  may not be necessary. 
       FIG. 2  displays the components of auction server  102 . These components include processor  200 , random access memory (RAM)  202 , read-only memory (ROM)  204 , clock  206 , communication port  208  and data storage device  210 . Data storage device  210  stores auction inventory database  212 , current auction database  214 , bidder database  216 , offer rules database  218 , reward rules database  220  and program  222 , discussed with reference to  FIGS. 3-7  below. 
     Processor  200  may be any commonly manufactured microprocessor chip, such as the Pentium II® manufactured by Intel Corporation. Processor  200  runs at a clock speed (typically measured in megahertz (MHz)) determined by clock  206 . Clock  206  may further be operative to measure the passage of time in order to calculate a current time in which the auction server  102  is operating. 
     Processor  200  is operatively connected to random access memory (RAM)  202  and read-only memory (ROM)  204 . RAM  202 , which may be one or more single inline memory module (SIMM) chips capable of storing a predetermined amount of data (typically measured in megabytes), is used by processor  200  for temporary storage of processing instructions during operation of auction server  102 . Read-only memory (ROM)  204  is at least one permanent non-erasable and non-rewritable memory chip that stores initializing instructions to be used by processor  200  during, for example, a start-up routine performed by auction server  102 . Further functions of random access memory (RAM)  202  and read-only memory (ROM)  204  will be apparent to one of ordinary skill in the art. 
     Processor  200  is further operatively connected to communication port  208 , which may be one or more of the following commonly known computer peripherals used for computer-related communications: a parallel port, a serial port, a network card, a fax/modem/telephone port and/or any combination of the same. Communication port  208  is operatively connected to transfer data between processor  200  and network  104 . 
     Processor  200  is further operatively connected to data storage device  210 , which may be any one of the following commonly known computer peripherals used for storing computer data: a hard drive, a floppy disk drive, a DVD drive such as those manufactured by Phillips Electronics, a ZIP drive such as those manufactured by IOMEGA, a tape drive, a Digital Audio Tape drive and/or any combination of the same. Further such devices will be apparent to one of ordinary skill in the art. Data storage device  210  may be further operative to store an operating system, one or more application programs, or a web site run off of auction server  102  each exemplified through program  222 , in order to successfully operate auction server  102  in accordance with the system and method of the present invention. 
       FIG. 3  illustrates exemplary fields and data stored therein for auction inventory database  212 . These exemplary fields include auction identification (ID) field  300 , auctioned item field  302 , open time/date field  303 , close time/date field  304  and minimum starting bid field  306 . For each record (e.g. each row) of auction inventory database  212 , auction ID field  300  lists an auction identifier assigned by the operator of auction server  102  to each auction to be conducted. The auction identifier may be any alphabetic, numeric, alpha-numeric or other type of code, assigned so that each auction conducted on auction server  102  has a unique identifier. For example, the numbers “123” and “124” have been assigned to two such auctions, as listed in  FIG. 3 . The data in auction ID field  300  corresponds to similar data stored in auction ID field  400  and auction ID field  600  discussed below with reference to  FIGS. 4 and 6 , respectively. 
     Auctioned item field  302  contains, for each record of auction inventory database  212 , a listing of the item that is to be placed for bidding in the auction identified by the corresponding auction identifier. The auctioned item may be a product or a service. Products may be any tangible item of which the high bidder may take possession, for example, an automobile, furniture, clothing, antiquities and the like. Services may be any intangible item to which the high bidder is entitled, such as a magazine subscription or house cleaning services. In the example offered by  FIG. 3 , “product X” is to be placed for bid in auction “123” and “product Y” is to be placed for bid in auction “124.” 
     Open time/date field  303  contains the date and time at which the corresponding auction is to be opened for bidding. In the example offered by  FIG. 3 , auction “123” is to be opened at 9:00 AM on Jan. 1, 1999. Likewise, close time/date field  304  contains the date and time at which the corresponding auction is to be closed (e.g. when no further bids will be accepted). In the example offered by  FIG. 3 , auction “124” is to be closed at 12:00 PM on Jan. 1, 1999. In one embodiment of the present invention, the data stored in close time/date field  304  for a particular auction may be changed based on the submission of a request and, preferably, a payment by a bidder to either extend the auction past the listed closing time or to close the auction early. The payment amount may be determined by the auctioneer, or may be subject to a parallel auction in which one or more bidders bid for a price for which the original auction will be closed. 
     Minimum starting bid field  306  contains, for each record, data corresponding to the minimum value that will be accepted for an auctioned item. For example, in auction “123,” the minimum bid that will be accepted for “product X” is $125.00 
       FIG. 4  illustrates exemplary fields and the data stored therein for current auction database  214 . Each record in current auction database  214  corresponds to a bid submitted by a bidder during an auction. The exemplary fields of this database include auction identification (ID) field  400 , bidder identification (ID) field  402 , bid amount field  404  and time received field  406 . Auction ID field  400  contains data corresponding to the data stored in auction ID field  300 . In the present example, only data for current auction number “123” is displayed. However, current auction database  214  may contain data for one or more previous auctions and/or one or more auctions conducted simultaneously. In the alternative, there may be one or more such current auction databases stored in data storage device  120 , each containing archived, historical data corresponding to a previous auction or current data corresponding to a current auction. 
     Bidder identification (ID) field  402  contains, for each record, a unique code corresponding to a bidder participating in a corresponding auction. The bidder identification code may be any alphabetic, numeric, alpha-numeric or other type of code, assigned by the auctioneer so that each bidder participating in an auction on auction server  102  has a unique identifier. In the present example, one bidder participating in auction “123” has the bidder identification “MALWG018,” as displayed in the first record of current auction database  214 . Each code stored in bidder ID field  402  corresponds to a similar code stored in bidder identification (ID) field  500  of bidder database  216 , discussed in conjunction with  FIG. 5  below. 
     Bid amount field  404  lists the currency value submitted as a bid by a bidder for an auctioned item. For example, the first record of auction database  214  shows that for auction number “123” bidder MALWG018B submitted a bid of $450.00 for “product X.” 
     Likewise, time received field  406  lists the date and time at which a bid was submitted. The data in time received field  406  may be recorded by auction server  102  as the bid is received after being transmitted by bidder terminal  110  over network  104 . Alternatively, the time and date information may be encrypted by the bidder and transmitted along with the bid to auction server  102 . In this manner, if there is a network disruption or if auction server  102  temporarily stops operating, the bid may still be accepted based on the encrypted date and time, even if the bid was actually received after the scheduled closing time. Upon receipt of the encrypted information, auction server  102  may containing processing instructions in program  222  to decrypt the encrypted information prior to storage in database  214 . Schemes used for encrypting and decrypting are well-known to one of ordinary skill in the art. See, for example, Bruce Schneier, Applied Cryptography: Protocols, Algorithms, and Source Code in C (2d Ed., John Wiley &amp; Sons, Inc., 1996). 
       FIG. 5  illustrates exemplary fields and the data stored therein for bidder database  216 . Bidder database  216  generally stores data specific to each bidder registered to participate in an auction conducted on auction server  102 . The exemplary fields of this database include bidder identification (ID) field  500 , historic participation level field  502 , bidder name field  504 , financial account identifier field  506  and contact information field  508 . 
     Bidder identification (ID) field  500  preferably contains a unique identifier for each bidder that has registered to participate in auctions conducted on auction server  102 . The data stored in bidder ID field  500  is further preferably assigned by the operator of auction server  102  to uniquely identify each individual that has registered to submit bids. Alternatively, the bidder identifier may be determined by the bidder. The data may be any alphabetic, numeric, alpha-numeric or other code as discussed above with regard to bidder ID field  402 . 
     Historic participation level field  502  contains a value determined by auction server  102  or an operator of auction server  102 . This value acts as a rating for the bidder. The value may be determined from the bidder&#39;s previous bidding activities on auction server  102 . For example, the value may correspond to the number of previous auctions in which the bidder submitted a greatest bid, the number of previous auctions in which the bidder submitted a competitive bid or some combination of the two. Other factors may be used to determine the values historic participation level field  502 . 
     Bidder name field  504  contains the name of the bidder corresponding to the bidder identifier. In the present example, the first record of bidder database  216  indicates the “John Doe” has been assigned bidder identifier DOEQ29J. 
     Financial account identifier field  506  contains data corresponding to a financial account number, such as a credit card account number or a checking account number, from which a value of a bid submitted by the bidder is to be deducted. In the present example, the first record of bidder database  216  indicates that John Doe owns an account corresponding to financial account identifier number 1234-1234-1234-1234. Other data, such as a bank or credit card company identifier and an expiration date of the financial account may be included in this field, or may be stored in another field (not shown). The information stored in financial account identifier field  506  may further be used to credit a reward given to the bidder or to deduct a penalty charged to a bidder, discussed further below. 
     Contact information field  508  contains data preferably corresponding to a post office address for each bidder. The data may contain the bidders street address and city and state of residence. This information may be used as a delivery address for an auctioned item that a bidder has won. It may be further used in processing a transaction with a financial institution holding the financial account indicated in financial account identifier field  206 . The transaction is preferably processed by auction server  102  in communication with payment processing server  108 . Other data, such as a bidder&#39;s telephone number or e-mail address may be stored in contact information field  508  or in another field (not shown). 
       FIG. 6  illustrates exemplary fields and the data stored therein for offer rules database  218 . Offer rules database  218  contains data accessed by auction server  102  during an auction to determine when a reward offer should be made to a bidder. The exemplary fields of this database include auction identification (ID) field  600 , required conditions field  602 , offer message field  604 , offer recipient rules field  606  and Reward ID field  608 . 
     Auction identification (ID) field  600  contains data corresponding to an auction identifier for an auction conducted on auction server  102 . The auction identifier is determined as discussed above with respect to auction ID field  300  and auction ID field  400 . 
     Required conditions field  602  contains, for each record, one or more conditions that must be met in order for a reward offer to be made to a bidder who submitted a bid during an auction. As indicated in  FIG. 6 , such conditions may require, for example, that (i) no bid has been received during a current auction for over 30 minutes, (ii) the high bid in a current auction is less than $300.00 after the third hour of such auction and/or (iii) the high bid submitted during a current auction is less than $450.00. Other such conditions in which offers are made to bidders in order to encourage competitive bidding may be determined by the auctioneer and stored in required conditions field  602 . 
     Offer message field  604  contains data corresponding to text that will be transmitted to a qualified bidder participating in a current auction if the corresponding condition is met. The text preferably lists the reward to be given during the current offer and the action the bidder must take to earn the reward. 
     Offer recipient rules field  606  lists the bidders to whom the offer message in corresponding offer message field  604  will be transmitted if the corresponding condition is met. The offer recipient rules may be established by the auctioneer, the owner of the auctioned product or a third party who is offering the reward. 
     Reward identifier field  608  contains a reward identifier corresponding to a reward to be given to a bidder if the bidder accepts the offer for the reward. The data in reward identifier field  608  is established in a similar fashion to the data stored in reward identifier field  700 , discussed below with regard to  FIG. 7 . 
       FIG. 7  illustrates exemplary fields and the data stored therein for reward rules database  220 . Reward rules database  220  contains data accessed by auction server  102  during an auction to determine when a reward should be provided to a bidder. The exemplary fields of this database include reward identifier field  700 , reward supplier field  702 , reward description field  704  and reward rules field  706 . 
     Reward identifier field  700  contains a reward identifier corresponding to a reward to be given to a bidder for a bid submitted during an auction. The reward identifier may be any alphabetic, numeric, alphanumeric, or other code which preferably is uniquely assigned  102  to each category of rewards by the auctioneer or auction server. 
     Reward supplier field  702  lists, for each reward identifier, the party who is supplying the reward. Typically the reward may be supplied by the auctioneer. However, in one embodiment of the present invention, the reward supplier may be a third party, such as a credit card company, who may supply the reward automatically if the bidder agrees to file a credit card application with the company. In such an embodiment, the third party may first check the credit history of the bidder using information supplied by auction server  102  from bidder database  216  before making the offer. Examples of other third parties include (i) a telecommunications company who may offer to supplement the pecuniary value of a bidder&#39;s bid if the bidder agrees to switch her long distance telecommunications carrier to the third party or (ii) an insurance company who may offer a reward to a bidder if the bidder agrees to purchase insurance from the company. Rewards supplied by third parties may include a value of currency, a supplement to the bid, a rebate on the product, an amount of frequent flier miles, a second product, a warranty for the product, free shipment of the product if the bid is the greatest bid, and the like. A supplement to the bid is an amount by which a bid is increased. For example, if a bid is for $50.00, and a supplement to that bid is $5.00, then the bid is increased to $55.00 with the supplement. The rewards offered by third parties may further be conditioned upon the bidder submitting the greatest bid. 
     Reward description field  704  contains a description of the reward to be given to a bidder. The reward may be any product, service or currency amount that the reward supplier sees fit to offer the bidder. 
     Reward rules field  706  contains a description of the one or more rules that must be met before a bidder may automatically receive the reward. These rules are preferably established by the auctioneer, but may be established by the reward supplier or the owner of the auctioned product if different than the auctioneer. Once the rules have been met, the bidder will receive notification that he has earned the reward. 
     In addition, reward rules field  706  may further contain one or more rules in which a penalty will be assessed against a bidder. The penalty is provided in order to discourage non-competitive bidding behavior. An example of a rule in which a penalty will be provided is where the bidder submits a bid that is less than the minimum starting bid listed in minimum starting bid field  306  for the auction. Another example is where a bidder submits a bid that is lower than a previously submitted bid. Other examples will be apparent to one of ordinary skill in the art. Examples of penalties include, barring the bidder from submitting bids for a particular auction or for a predetermined amount of time, limiting the number of bids the bidder may submit, or charging the bidder&#39;s financial account for a predetermined currency amount. 
     Turning now to  FIG. 8 , reward offering process  800  is continuously performed during a given auction session by processor  200  in conjunction with processing instructions stored in program  222  of data storage device  210 . Process  800  is further performed for each auction listed in auction ID field  600  that is conducted on auction server  102 . Process  800  begins at step  802  where processor  200  is programmed to retrieve the required auction conditions listed in field  602  of database  218  for a current auction. At step  804 , processor  200  retrieves the current auction data stored in fields  404  and  406  of current auction database  214 . At step  806 , processor  200  correlates the retrieved data and compares it to the required auction conditions. If the current auction data satisfies the required auction conditions, process  800  continues to step  808 . Otherwise process  800  ends and is reset to step  802 . 
     At step  808 , processor  200  retrieves from offer recipient rules field  606  each offer recipient rule stored for the subject auction and for which the required conditions have been satisfied. At step  810 , processor  200  determines, based on the retrieved rules, which of the bidders participating in the subject auction are to receive the corresponding offer message stored in offer message field  604 . At step  812 , the qualified bidders contact information and/or financial account identifier is retrieved by processor  200  from bidder database  216  when this information is necessary to send the offered reward to the bidder. At step  814 , the corresponding offer message stored in offer message field  604  is transmitted to the qualified bidders from communication port  208  over network  104  to the qualified bidders terminals  110 . 
     At step  816 , processor  200  determines whether the offer was accepted by a bidder. If the offer is not accepted, process  800  ends and is reset to step  802 . If the offer is accepted by a bidder, then at step  818 , the reward is assigned to the bidder and is, for example, sent to the bidder&#39;s address, added to the bidder&#39;s next bid or credited to the bidder&#39;s financial account, depending on the type of reward. Process  800  then ends and is reset to step  802 . 
     Referring now to  FIG. 9 , a single bidder reward process  900  is continuously performed during a given auction session by processor  200  in conjunction with processing instructions stored in program  222  of data storage device  210 . Process  900  may be performed during any or all auctions, as determined by the auctioneer to be appropriate. 
     Process  900  begins at step  902  when a bid is received from a bidder terminal  110 , transmitted over network  104  and received via communication port  208 . As described above, the bid information may contain a current auction identifier, the bidder identifier, a pecuniary value of the bid and, optionally, an encrypted date and time at which the bidder transmitted this information. After the bid information is stored in current auction database  214 , the process continues to step  904  where processor  200  determines whether the auction for which the bid is submitted is open. This is accomplished by referencing the time stored from signals received from clock  206  and comparing the current time to the times stored in open date/time field  303  and close date/time field  304 . If the auction is open the process continues to step  906 , otherwise process  900  ends and is reset to step  902 . 
     At step  906 , processor  200  determines whether the bidder submitting the bid has sufficient funds or credit to pay the currency value of the bid. This is accomplished by retrieving the financial account identifier stored in field  506  which corresponds to the bidder identifier. Processor  200  then communicates with payment processing server  108  through communication port  208  and over network  104  to determine whether the financial account has sufficient funds to cover the bid amount. If the bidder has sufficient funds or credit, process  900  continues to step  908 . Otherwise, process  900  ends and is reset to step  902 . In an alternate embodiment, step  906  may be deferred until after the close of the auction Other methods for determining whether the bidder has sufficient funds will be understood by those skilled in the art. 
     At step  908 , processor  200  determines, in accordance with at least one exemplary reward rule, whether the received bid is greater than the current high bid. Those skilled in the art will understand that the following illustrated method is likewise applicable to other types of reward rules. The determination is accomplished by retrieving all the bid values stored in bid amount field  404  of current auction database  214  and comparing them to the received bid. If the received bid is less than the current high bid, process  900  optionally continues to step  909  where a penalty may be applied against the bidder, after which process  900  ends and is reset to step  902 . If, however, the received bid is greater than the current high bid, then the exemplary reward rule has been met and process  900  continues to step  910 . 
     It should be apparent to one of ordinary skill in the art that various additional or substitute reward rules may be applied at step  908 . For example, instead of a reward rule that requires that the received bid is greater than a current high bid, the auctioneer may provide for such alternate reward rules as: (i) the bidder submits a bid within a predetermined time from the submission of a previous bid, (ii) the bidder must submit greater than a predetermined number of increasing bids during the course of the auction (e.g. each of the bidder&#39;s bids is greater than the former), (iii) the bidder&#39;s bid must be greater than any previous bid by at least a predetermined bid spread, (iv) the greatest bid for the auction must be greater than $500.00, (v) the bidder must have participated in greater than a predetermined number of previous auctions, (vi) the bid is submitted after a predetermined amount of time from a previous bid, (vii) random bidders may be selected to receive a reward. Other such conditions will be apparent and are contemplated to be within the scope of the present invention. 
     At step  910 , the bid information is stored in the appropriate fields of current auction database  214 . Then, at step  912 , processor  200  retrieves the reward rules corresponding to the current auction as stored in reward rules field  706  of reward rules database  220 . At step  914 , processor  200  compares the received bid to the reward rules to determine if the bidder is qualified to receive a reward based on her bid. If so, process  900  continues to step  916  where the reward is provided to the bidder, after which process  900  ends and is reset to step  902 . If not, process  900  is likewise ended and reset to step  902 . 
     Referring now to  FIGS. 10A-10B , a multiple bidder reward process  1000  is performed by processor  200  in conjunction with processing instructions stored in program  222  of data storage device  210 . Process  1000  may be performed during any or all auctions as determined by the auctioneer to be appropriate. 
     Process  1000  begins at step  1002  when a bid is received from a bidder terminal, transmitted over network  104  and received via communication port  208 . As described above, the bid information may contain a current auction identifier, the bidder identifier, a pecuniary value of the bid and, optionally, an encrypted date and time at which the bidder transmitted this information. After the bid information is stored in current auction database  214 , the process continues to step  1004  where processor  200  determines whether the auction for which the bid is submitted is open. This is accomplished by referencing the current time determined from signals received from clock  206  and comparing the current time to the times stored in open date/time field  303  and close date/time field  304 . If the auction is open the process continues to step  1006 , otherwise process  1000  ends and is reset to step  1002 . 
     At step  1006 , processor  200  determines whether the bidder submitting the bid has sufficient funds or credit to pay the currency value of the bid. This is accomplished by retrieving the financial account identifier stored in field  506  which corresponds to the bidder identifier. Processor  200  then communicates with payment processing server  108  through communication port  208  and over network  104  to determine whether the financial account has sufficient funds to cover the bid amount. If the bidder has sufficient funds or credit, process  1000  continues to step  1008 . Otherwise, process  1000  ends and is reset to step  1002 . 
     At step  1008 , processor  200  determines, in accordance with an exemplary reward rule, whether the received bid is greater than the current high bid. This is accomplished by retrieving all the bid values stored in bid amount field  404  of current auction database  214  and comparing them to the received bid. If the received bid is less than or equal to the current high bid, process  1000  continues to step  1009  where a penalty may be assessed against the bidder, after which process  1000  ends and is reset to step  1002 . If, however, the received bid is greater than the current high bid, process  1000  continues to step  1010 . 
     As discussed above with regard to step  908 , the reward rule employed at step  1008  is merely exemplary. Additional or alternate reward rules may be employed. 
     At step  1010 , the bid information is stored in the appropriate fields of current auction database  214 . Processor  200  then compares the bid against the reward rules stored in reward rules field  706  of reward rules database  220 . If the bid satisfies the conditions of one or more of the reward rules, the bidder is given the reward at step  1012 , and process  1000  continues to step  1014 . 
     At step  1014 , a bid from a second (or subsequent) bidder terminal is transmitted over network  104  and received via communication port  208 . As described above, the bid information may contain a current auction identifier, the bidder identifier, a pecuniary value of the bid and, optionally, an encrypted date and time at which the bidder transmitted this information. After the bid information is stored in current auction database  214 , the process continues to step  1016  where processor  200  determines whether the auction for which the bid is submitted is open. This is accomplished by referencing the current time determined from signals received from clock  206  and comparing the current time to the times stored in open date/time field  303  and close date/time field  304 . If the auction is open the process continues to step  1018 , otherwise process  1000  ends and is reset to step  1002 . 
     At step  1018 , processor  200  determines whether the second bidder submitting the second bid has sufficient finds or credit to pay the currency value of the bid. This is accomplished by retrieving the financial account identifier stored in field  506  which corresponds to the second bidder identifier. Processor  200  then communicates with payment processing server  108  through communication port  208  and over network  104  to determine whether the financial account has sufficient funds to cover the bid amount. If the second bidder has sufficient funds or credit, process  1000  continues to step  1020 . Otherwise, process  1000  ends and is reset to step  1002 . 
     At step  1020 , processor  200  determines, based on an exemplary reward rule, whether the second received bid is greater than the current high bid. This is accomplished by retrieving all the bid values stored in bid amount field  404  of current auction database  214  and comparing them to the second received bid. If the second received bid is less than or equal to the current high bid, process  1000  continues to step  1021  where a penalty may be assessed against the second bidder, after which process  1000  ends and is reset to step  1002 . If, however, the second received bid is greater than the current high bid, process  1000  continues to step  1022 . 
     As discussed above with regard to steps  908  and  1008 , the reward rule employed at step  1020  is merely exemplary. Additional or alternate reward rules may be employed. 
     At step  1022 , the bid information is stored in the appropriate fields of current auction database  214 . Processor  200  also retrieves corresponding reward rules from reward rules database  220 . At step  1024 , processor  200  then compares the second bid against the retrieved reward rules. If the second bid does not satisfy the reward rules, process  1000  ends and is reset to step  1002 . However, if the second bid satisfies the conditions of one or more of the reward rules, the bidder is given the reward at step  1026 , after which process  1000  ends. In an alternate embodiment, the reward assigned to the first bidder may be revoked as part of step  1026 . 
     While the best mode contemplated for carrying out the invention has been described in detail in the foregoing, those of ordinary skill in the art to which the instant invention relates will recognize various alternative designs and embodiments for practicing the invention. In particular, the methods and systems disclosed above, though discussed in terms of an on-line embodiment, are equally applicable to enhance competitive bidding in any conventional form of auctioning. Furthermore, the databases and data stored therein may be rearranged or combined into equivalent structures. Finally, it is to be understood that a reward may be provided during a current auction or may be awarded subsequent to the current auction. Accordingly, it is to be understood that the foregoing description is provided for illustrative purposes only and does not limit the scope of the instant invention, as defined by the appended claims.

Technology Classification (CPC): 6