Patent ID: 7403911

Claim:
A computer implemented method for determining a preference policy for an auction to be conducted, said method comprising: selecting characteristics of said auction to be conducted; selecting a relevant bidding model for said auction to be conducted; estimating a structure of said auction to be conducted, said estimating comprises expressing unobservable variables in terms of observable bids, wherein said unobservable variables are expressed in terms of observable bids by inverting said bid model; predicting a bidding behavior for said auction to be conducted; predicting a first outcome of said auction to be conducted; and evaluating said first outcome of said auction to be conducted, wherein said evaluating comprises: selecting an optimal preference policy from a plurality of candidate preference policies for treating different groups of bidders differently, wherein said optimal preference policy comprises the candidate preference policy within a plurality having the highest ranking; and outputting said optimal preference policy to a participating entity in an auction, said outputting performed prior to conducting said auction.