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Method for Autonomous Bidding Disclosure Number: IPCOM000004604D
Original Publication Date: 2001-Feb-28
Included in the Prior Art Database: 2001-Feb-28
Document File: 2 page(s) / 31K

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Gary Goodman: AUTHOR


Method for Autonomous Bidding

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Method for Autonomous Bidding

Gary Goodman

Computer schemes which automate the auction process have been around for some time (circa 1960). Patents from that era describe schemes to accomplish this from the standpoint of the seller's (or auctioneer's) server and eliminate the bidder from the transaction in order to speed up the auction. Early schemes were mainly based on the maximum bid one might make. Later, more sophisticated schemes made use of demand curves to give the bidder more control of the auction process.

In the 1990's the internet blossomed and along with it came e-bay. Since that time, many other auction web-sites have sprung up. Recently these auction sites have instituted automatic bidding for the buyer (e.g. e-bay's Proxy Bid and Yahoo's Automatic Bidding). These methods take input from the bidder and use it to establish the bid at the level of the second highest high bid plus some delta. All this serves to get the bid higher faster. Other methods to assist in the bidding have been proposed. One has the buyer directly in the loop by wireless messaging to a PDA or cell phone which keeps the user constantly informed of the latest changes in the bidding and allows the user to increase his/her bid.

What is missing is advocative representation for the bidder in this monetary battle. The methodology described proposes an autonomous bidding mechanism which will take the bidder out of the loop and therefore away from the emotional aspects of the bidding. The user sets up parameters for the bid schema and waits for the result.

Proposed Solution

The proposed solution allows the user to define parameters relating to the bidding, and once defined, tracks the ongoing auction, makes decisions based on the parameters and stored auction histories, and completes the bidding for the user. Parameters defined by the user would include Identification of the article to be bid on, Preferred opening bid, Highest allowed bid, Aggressiveness value , Minimum delta for bid increase, Maximum delta for bid increase, and Minimum time between bids.

Parameters retrieved from auctioneer's automated system would include

Current bid, Auction end date and time, Auction bid history including timing data.

A system which utilizes these acquired parameters and stored past histories as inputs to a decision process, using fuzzy logic and/or neural nets, would complete the bidding for the user, and then inform the user of the outcome.

Benefits of the Proposed Solution

1. Removes the emotional aspects from the bidding process.

2. Utilizes time as an important aspect of bidding sequences.

3. Makes bidding decisions based on past history of current bidding sequence.

4. Makes bidding decisions based on past history of similar type bidding sequences.

5. Makes bidding decisions based on past success/failure of bidding sequences