System and method for auctioning services over an information exchange network

Abstract

The present invention is directed to an improved system and method for auctioning services, which overcomes some of the drawbacks in the prior art systems and methods. In accordance with one aspect of the present invention, buyers request and specify at the start of the auction the number of lowest bids the buyers would like to see. By requesting to see more bids, the buyers would have greater opportunity to evaluate service providers based on factors other than price, thereby encouraging less price competition among providers. By requesting to see fewer bids, the buyers would have less opportunity to evaluate service providers based on factors other than price, thereby encouraging fierce price competition. The number of bids requested by the Buyer is made known to the bidders. The net effect is that the buyers can control the price/quality tradeoff at the onset of the auction process, and encourage the bidders to provide their lowest bids when pricing is important. This lets the buyers make their final decision based on factors in addition to price, at the lowest price possible. In another aspect of the present invention, a rating system is employed to rate the buyer's transaction history, with respect to their frequency of following through with the bids for jobs that they submitted for auction. This rating system deters those buyers that casually shop for pricing with little chance of following through with the auction. Buyers who frequently submit jobs without executing them will get a low rating. A low rating discourages service providers from bidding, thereby decreasing the competitiveness of an auction and increasing the cost of obtaining the service. Consequently, buyers will be reluctant or discouraged to submit for auctioning jobs that have a low chance of occurring, because it affects their rating. The buyer follow-through ratings give the bidders a better sense of the buyers' commitment prior to deciding on allocating resources to participate in bidding at the auction. In one embodiment of the present invention, the system and method for auctioning services are implemented over an information exchange network. In a more specific embodiment of the present invention, the information exchange network is the Internet. This facilitates bringing together the many service providers in a centralized auction market using standardized, electronic bid forms to communicate prices publicly, and service providers have a chance to adjust their prices in real time. For purpose of illustrating the inventive concept, the present invention is described using the example of document services, and more particularly printing services.

1 . A process for auctioning services requested by a buyer, comprising the steps of:
 the buyer submitting a service request to a broker for auctioning;   the buyer specifying at the start of the auction the number N of best bids to be considered from the auction;   the broker making the number N available to bidders;   the broker notifying the buyer of the identities of the N lowest bids; and   the buyer selecting a bidder from one of the N lowest bids or choosing not to execute the job.   
   
   
       2 . A process as in  claim 1 , wherein the broker does not allow the buyer to consider any bids greater than the N th  bid. 
   
   
       3 . A process as in  claim 1 , wherein the bidders can bid any amount as long as they beat an outstanding bid by more than a predetermined amount. 
   
   
       4 . A process as in  claim 1 , wherein the service request is for print services. 
   
   
       5 . A process as in  claim 1 , wherein the broker is an electronic broker operating at a node in an information exchange network. 
   
   
       6 . A process as in  claim 5 , wherein the information exchange network is the Internet. 
   
   
       7 . A process as in  claim 1 , further comprising the step of the broker making available to the bidders a buyer rating, wherein said rating includes information on the buyer's follow-through of bids in prior auctions. 
   
   
       8 - 12 . (canceled) 
   
   
       13 . A system for auctioning services requested by a buyer, comprising:
 means for the buyer to submit a service request to a broker for auctioning;   means for the buyer to specify at the start of the auction the number N of best bids to be considered from the auction;   means for the broker to make N available to bidders; and   means for the buyer to select a bidder from one of the N best bids.   
   
   
       14 . A system as in  claim 13 , wherein the broker is configured such that it does not allow the buyer to consider any bids greater than the N th  bid. 
   
   
       15 . A system as in  claim 13 , wherein the broker is configured such that the bidders can bid any amount as long as they beat an outstanding bid by more than a predetermined amount. 
   
   
       16 . A system as in  claim 13 , wherein the service request is for print services. 
   
   
       17 . A system as in  claim 13 , wherein the broker is an electronic broker operating at a node in an information exchange network. 
   
   
       18 . A system as in  claim 17 , wherein the information exchange network is the Internet. 
   
   
       19 . A system as in  claim 13 , further comprising means for the broker to make available to the bidders a buyer rating, wherein said rating includes information on the buyer's follow-through of bids in prior auctions. 
   
   
       20 - 24 . (canceled) 
   
   
       25 . A network system for auctioning services, comprising:
 one or more nodes for buyers to access the network;   one or more nodes for bidders to access the network; and   a broker system for auctioning services requested by a buyer, comprising:
 means for the buyer to submit a service request to a broker for auctioning; 
 means for the buyer to specify at the start of the auction the number N of best bids to be considered from the auction; 
 means for the broker to make N available to bidders; and 
 means for the buyer to select a bidder from one of the N best bids. 
   
   
   
       26 . (canceled)