Patent ID: 7716101

Claim:
A computer-implemented method of determining one or more winning bids in a multi-unit combinatorial auction, the method comprising the steps of: (a) receiving in a computer storage data regarding a plurality of items and the total quantity of each item available for sale; (b) receiving in the computer storage a plurality of bids, each bid including at least one of the items of step (a) and for each item a desired quantity thereof, each bid further including a price; (c) a computer processor determining from plural combinations of the bids of step (b) which combination of the bids has an optimal sum of prices, wherein: the quantity of each item of said combination that can be disposed of for free is less than or equal to the total quantity of said item available for sale; and the quantity of each item of said combination that cannot be disposed of for free is equal to the total quantity available for sale; and (d) accepting as winning bids, the bids forming said combination, wherein: in a forward auction the optimal sum is a maximum sum; and in a reverse auction the optimal sum is a minimum sum.