Bidirectional Auction Using a Bid-window : Auction and Reverse-Auction Hybrid
Original Publication Date: 2001-Nov-27
Included in the Prior Art Database: 2003-Jun-20
Bidirectional Auction Using a Bid-window : Auction and Reverse-Auction Hybrid Introduction Competitive bidding for items or services over the Internet is typically modeled as either an Auction or a Reverse Auction: Auctions are ideal for obtaining the highest price for a item or service which the consumer market is willing to pay. Typically a minimum price is established, so the seller is in a no-risk situation: the item will sell at or above an acceptable minimum price, or will remain in the possession of the seller. Auctions are not as attractive to a seller when the seller is at risk of loosing value if the item is not sold. A Reverse Auction is ideal where good/services have an associated life, after which the item looses significant value, if not all value. For example, in the travel (expired ticket) and produce industries (old-food). The reverse auction attempts to balance optimal value for the seller with the risk of reaching a point of no-value by offering lowing prices to the consumer.