Determining a demand function for an item

Abstract

An embodiment in accordance with the present invention provides a method for determining a demand function for an item. For example, the method includes determining a first estimate of the demand function for the item by utilizing a first auction having a first set of auction parameters. Additionally, the method includes determining a second estimate of the demand function for the item by utilizing a second auction using auction data from the first auction. The second auction has a second set of auction parameters based on the first estimate of the demand function.

1 . A computer readable storage medium having readable code embodied therein for causing a computer system to perform operations comprising:
 (a) determining a sample size for estimating a demand function for an item;   (b) configuring first auction parameters for a first auction to minimize cost of collecting said sample size;   (c) determining a first estimate of said demand function for said item utilizing bid data of said first auction;   (d) in response to a pre-established criterion not being satisfied, determining a second estimate of said demand function by utilizing a second auction, said second auction having second auction parameters based on said first estimate of said demand function.   
     
     
         2 . The computer readable storage medium as described in  claim 1 , wherein said first and second auctions each comprises a Vickrey auction. 
     
     
         3 . The computer readable storage medium as described in  claim 2 , wherein said Vickrey auction is a sealed-bid-second price auction. 
     
     
         4 . The computer readable storage medium as described in  claim 1 , wherein said pre-established criterion is an accuracy criterion or a budget resources limit. 
     
     
         5 . The computer readable storage medium as described in  claim 1 , wherein said first and second auctions include auction participants selected from a pool that is representative of potential buyers. 
     
     
         6 . The computer readable storage medium as described in  claim 1 , wherein said first and second auction parameters each include a number of items to sell at said first and second auctions, wherein said number of items to sell at said first and second auctions is determined to be the number of items that provides the maximum profit. 
     
     
         7 . A computer-implemented automated demand estimator system for estimating demand of a given item, comprising:
 a sample size determiner that determines a minimum auction sample size for estimating said demand for a specified accuracy;   an auction configurer that configures auction parameters to minimize cost of collecting said sample size for estimating said demand; and   a demand function estimator that generates a demand function estimation for said item utilizing bid data of an auction having said auction parameters.   
     
     
         8 . The system as described in  claim 7 , further comprising a report generator coupled to said demand function estimator to generate a report comprising said demand function estimation for said item. 
     
     
         9 . The system as described in  claim 7 , wherein said demand function estimator determines a plurality of demand function estimations for said item by utilizing a plurality of additional auctions. 
     
     
         10 . The system as described in  claim 9 , wherein each of said additional auctions having auction parameters based on the most recent demand function estimation of said plurality of demand function estimations. 
     
     
         11 . The system as described in  claim 7 , wherein said auction comprises a Vickrey auction. 
     
     
         12 . The system as described in  claim 7 , wherein said Vickrey auction is a sealed-bid-second price auction. 
     
     
         13 . The system as described in  claim 7 , wherein said auction comprises auction participants selected from a pool representative of potential buyers of said item.