Patent Number: 8,719,141

Title: Apparatus and method for conducting a recurring auction using a participant retention mechanism

Abstract: The present invention includes a method and system for trading goods and services through recurring auctions. Recurring auctions are increasingly popular form of markets for perishable and time-sensitive resources. Traditional auctions strive to motivate bidders to bid their true valuation of the resources traded. Yet, when successful, they also quickly divide the recurring auction bidders into permanent winners and permanent losers. The latter have no incentive to stay in the market, so they leave, decreasing the competitive pressure and depressing pricing. The present invention introduces a novel winner selection method to maintain customers' interest in auction participation that employs participant retention mechanism in assigning traded resources to bidders. The winners are selected from a wider range of bidder ranks than in traditional auction mechanisms. For a group of bidders, winner selection takes into account bid values, allocation of resources and participation of each bidder in the previous auction rounds.

Inventors: Lee; Juong-Sik (Troy, NY), Szymanski; Boleslaw Karol (Newtonville, NY)

Assignee: Optimaret, Inc.

International Classification: G06Q 40/00 (20120101)

Expiration Date: 5/06/12018