Patent ID: 7702564

Claim:
A method for determining a demand function for an item comprising: determining a first estimate of said demand function for said item by utilizing a first auction having a first set of auction parameters at an automated demand estimator computer system, said first auction controlling participant selection as well as quantities of said item offered in said auction and the timing and duration of said auction in order to obtain a first estimate of said demand function for said item wherein said first auction is a controlled auction that does not result in an actual sale of said item, wherein said first estimate of said demand function is obtained from a probability distribution function of bid values of said first action; determining a second estimate of said demand function for said item by performing a second auction having a second set of auction parameters at said automated demand estimator computer system, said second auction controlling participant selection as well as quantities of said item offered in said second auction and the timing and duration of said second auction in order to obtain a second estimate of said demand function for said item wherein said second auction is a controlled auction that does not result in an actual sale of said item, wherein said second estimate of said demand function is obtained from a probability distribution function of bid values of said second action; and utilizing said first estimate of said demand function from said first auction and said second estimate of said demand function from said second auction to generate an overall estimate of said demand function for said item at said automated demand estimator computer system.