Patent ID: 7197476

Claim:
A method in an electronic auction for generating off-increment proxy bids, said method comprising the computer implemented steps of: specifying a minimum increment for bidding on an item; receiving a bid for said item from a first bidder that is a current high bid for said item; identifying a previously recorded proxy bid from a second bidder that is greater than said current high bid but not greater than said current high bid plus said minimum increment; and generating by said electronic auction an off-increment bid that becomes a new high bid for said item utilizing said proxy bid, wherein said second bidder holds the new high bid for said item, further wherein said off-increment bid does not exceed said bid received from said first bidder by said minimum increment, and wherein said off-increment bid does not exceed said proxy bid; generating a proposed bid by said electronic auction, said proposed bid being equal to said minimum increment plus a current high bid for said item; determining if said proposed bid exceeds said proxy bid; and in response to a determination that said proposed bid does exceed said proxy bid, awarding said item to said second bidder for said off-increment bid, wherein said off-increment bid is equal to said proxy bid.