Patent ID: 7739154

Claim:
A method for conducting an online auction transaction comprising the steps of: creating, by a Parameter Calculation and Setting Engine, an auction having a start time, a closing time, and an exclusionary interval, wherein the exclusionary interval begins before the closing time and ends at the closing time; receiving a total number of bids for the auction placed during the exclusionary interval, wherein the total number of bids is at least two bids; determining, by an Auction management Engine, that each bid in the total number of bids is valid; calculating, by the Parameter Calculation and Setting Engine, in response to the determination: a new closing time, wherein the new closing time is calculated to occur after the closing time; an extension period, wherein the extension period is calculated to equal the amount of time between the closing time and the new closing time; and a new exclusionary interval, wherein the new exclusionary interval is calculated to be shorter than the exclusionary interval by a factor inversely proportional to the total number of bids for the auction placed during the exclusionary interval; updating the closing time to the new closing time; and updating the exclusionary interval to the new exclusionary interval.