Patent ID: 8438072

Claim:
A method of operating an online dynamic-bidding exchange for use in a reverse auction, the exchange including a server system that includes a database, and a client system coupled to the server system via a communications network, said method comprising: the server system performing a search over the network and determining a lowest credible price of a product available from one of a plurality of online vendors; receiving, by the server system, an offer to sell the product from a seller via the communications network and storing the offer to sell in the database, the offer to sell embodied as a reserve price, wherein an identity of the seller is anonymous and is not displayed to a buyer; associating, within the database, the product with the reserve price and the lowest credible price; receiving, by the server system, a selection of the product from the buyer through the client system after the product is associated with the reserve price and the lowest credible price; determining, by the server system, a sales price of the product comprising: comparing the lowest credible price to the reserve price; and setting the sales price to a value that is greater than the reserve price and less than or equal to the lowest credible price upon a determination that the reserve price is less than the lowest credible price and setting the sales price equal to the lowest credible price upon a determination that the reserve price is greater than or equal to the lowest credible price; transmitting the sales price from the server system to the client system; and displaying the sales price to the buyer via the client system.