Patent ID: 8046279

Claim:
A method of evaluating sequencing rules for a multiple lot auction, comprising: obtaining a next set of bids from a plurality of simulated bidders; simulating the multiple lot auction using the next set of bids and a sequencing rule until simulated bidding on all lots is closed, wherein the simulating comprises: identifying a set of potentially profitable lots for each bidder based on current simulated bid prices; determining first and second utilities for each potentially profitable lot for each bidder wherein the first and second utilities are calculated as a function of a variable representing the bidder's aversion to risk, and the first utility is for a set of the profitable lots the bidder is currently winning and the second utility is for a set of the profitable lots the bidder will win if bids for the set are accepted; calculating a utility gain value based on a difference between the first and second utilities; and accepting bids for lots from the multiple lot auction based on the utility gain value; simulating the multiple lot auction using a different sequencing rule until bidding on all lots is closed; and comparing results of the simulated auctions with both sequencing rules, wherein the sequencing rules determine how closing times for accepting any bids are ordered among each of the lots.