Patent ID: 7231365

Claim:
A computer-implemented auction method for holding an auction for a product comprising the steps of: receiving bids from at least one computer or from multiple computers within a network of computers that include minimum desired volumes and maximum desired volumes and evaluation prices for said product wherein said evaluation prices are represented as a non-linear function relative to the desired volume of said product in said transaction; generating, using computing resources, a finite set of bids that include as an element said bids that were received from said at least one computer or from multiple computers within said network of computers; employing dynamic programming using said computing resources to generate, using said bids that were received in said receiving bids step, a subset of bids wherein a maximum gain is obtained within a range represented by a count of said product available for sale, wherein said dynamic programming includes (i) allocating a two-dimensional array V, representing a maximum gain, to a memory area by using said dynamic programming using said computing resources; (ii) initializing said two-dimensional array V; and (iii) recursively solving the recursive equation for said two-dimensional array V, wherein V ( k,j ):=max{ V ( k+ 1, j ), V ( k,j+ 1), max lk≦n≦hk {V ( k+ 1, j+x )+ e k ( x )}} is used as the recursive equation. where V(k,j) denotes said two-dimensional array V populated with said evaluation prices; where k represents the bid number and denotes an integer equal to or greater than 1 and equal to or smaller than n; j represents the number of the product and denotes an integer equal to or greater than 0 and equal to or smaller than s; n denotes the number of bids; s denotes the number of products available for the transaction; e k denotes the evaluation price when x units of products are purchased according to the bid b k ; 1 k denotes the minimum volume of the bid b k ; and h k denotes the maximum volume of the bid b k ; and identifying or accepting a bid from said subset of bids, wherein a bid is selected by back tracking of said two-dimensional array V from the element on the smallest row and in the smallest column.