Patent ID: 8301491

Claim:
A computer-implemented method, comprising: receiving a bid from a user, the bid specifying a maximum amount that the user will pay to obtain an item prior to an auction of the item; determining, by a computer, a future spot price for an item, the future spot price being an estimated price at which the item will be awarded by the auction at a future time; determining, by a computer, a time value factor that defines a time dependent value of reserving the item prior to the item being auctioned at the future time; determining, by a computer, a reservation price for the item at a current time, the reservation price being determined based on the future spot price, the time value factor, and a difference between the current time and the future time at which the item will be auctioned, the reservation price being determined using a function that causes the reservation price to converge to the future spot price as the difference between the current time and the future time approaches zero; adjusting the reservation price based on market signals that specify a change in demand for the item, wherein adjusting the reservation price comprises increasing the reservation price based on a demand signal indicating that the demand for the item has increased since a time prior to the current time; determining that the bid meets the reservation price; and in response to determining that the bid meets the reservation price, awarding, by a computer, the item to the user at the reservation price.