Patent Number: 7,133,841

Title: Method and computer system for conducting a progressive, price-driven combinatorial auction

Abstract: A method and computer system for conducting a progressive, price-driven combinatorial auction wherein equilibrium prices supporting optimal allocation are provided. The auction mechanism allows bids on bundles and uses an innovative price setting mechanism that ensures that the bundle prices reported by the auction have the property that each participant's or bidder's tentative allocation maximizes the value reported in the participant's bid. The auction is progressive, and requires that a participant's new bid improves his previous bid in a precisely defined manner. The auction terminates when no participant submits a new bid, or according to some other specified criterion.

Inventors: Wurman; Peter R. (Raleigh, NC), Wellman; Michael P. (Ann Arbor, MI)

Assignee: The Regents of the University of Michigan

International Classification: G06Q 40/00 (20060101)

Expiration Date: 2019-11-07 0:00:00