WO2001088796A1

WO2001088796A1 - Device and method for internet lottery-auction

Info

Publication number: WO2001088796A1
Application number: PCT/KR2001/000784
Authority: WO
Inventors: Bon-Suk Koo
Original assignee: Koo Bon Suk
Priority date: 2000-05-17
Filing date: 2001-05-15
Publication date: 2001-11-22
Also published as: AU2001258875A1

Abstract

The present invention relates to an internet lottery-auction apparatus and method of subsided auction types, more particularly to an internet lottery-auction apparatus and method for raising probability of making a successful bid by designing different methods for determining the highest bid price according to the auction types and providing new reliable lottery methods. For this purpose, the present invention provides a new internet lottery-auction method of auction types, which subdivides the auction types into a general type lottery-auction method, an upper limit price type lottery-auction method and a small profits and quick returns type lottery-auction method and a simultaneous bidding type lottery-auction method and uses different types of methods for determining the highest bid price according to those types of the lottery-auction methods, and also provides transparent lottery methods using bidding prices, bidding times and so on.

Description

DEVICE AND METHOD FOR INTERNET OTTERY-ACUTION

BACKGROUND OF THE INVENTION

1. Field of the Tnvention

The present invention relates generally to an internet lottery-auction device and method for subdivided auction types, and in particular, to a device and method for deteπruning the highest bid price for subdivided auction types, that is, general type lottery-auction, upper limit price lottery-auction, small profits and quick returns type lottery-auction, and simultaneous bidding type lottery-auction.

The present invention relates to an internet lottery-auction device and method for auction types to offer reliable transactions based on internet lottery- auctions by expanding selectable auction types according to the tastes of bidders and sellers and providing a novel transparent lottery method.

2. Description of the Related Art

Due to the recent rising popularity of Internet auction-based transactions, diverse auction types including reverse auctions have been proposed to induce more successful auction-based transactions. In reality, however, the probability of successful bids is very low because most Internet auctions have failed to give continual interest to buyers and sellers except for some auction items presented almost as favors. Consequently, so many auction items for which there are no winning bidders are re-listed with only slight modifications to auction terms that buyers encounter virtually the same items day after day and thus they lose interest in bidding. This, in turn, further drops the probability of unsuccessful bids. Therefore, there is a need for exploring a novel auction method that can boost auction-based transactions over the Internet by attracting continual interest from prospective buyers and markedly increasing the successful bid rate.

SUMMARY OF THE INVENTION

It is, therefore, an object of the present invention to provide an internet lottery-auction device and method in which a plurality of prospective buyers place bids over the Internet, a required number of bidders are selected to draw lots in the order of lower bid prices, the lowest bid price of the lottery- participating bidders is determined as a winning bid price, the lottery- participating bidders pay their equal shares of the winning bid price, and a winning bidder is selected from the lottery-participating bidders by lots.

It is another object of the present invention to provide an internet lottery- auction device and method, which absorb more buyers and sellers and boost internet auction-based transactions by attracting interest from them through diversified auction types and increasing auction-based transaction reliability by adopting a transparent lottery method, and which also determine a winning price for an item reasonably by competitive bids.

The foregoing and other objects are achieved by an Internet lottery- auction device and method. According to one aspect of the present invention, in an Internet lottery-auction device, an item registration module registers item information including auction type for an item for sale of a seller connected through the Internet in a database. A bid registration module receives a bid from a buyer connected through the Internet, receives a bid price share from the buyer, and assigning a bidding number to the buyer. The bid price share is calculated by dividing the bid price of the buyer by a predetermined required bidder number. A winning price determination module ends an auction according to a predetermined rule corresponding to the auction type, selects some of bidders for the item as a lottery-participating set, and determines a winning bid price for the item. A winner determination module determines a winning bidder among the lottery participating set in a predetermined lottery picking method.

According to another aspect of the present invention, in an Internet lottery-auction method, item information is registered in a database, including auction type for an item for sale of a seller connected through the Internet. A bid and a bid price share are received from a buyer connected through the Internet and a bidding number is assigned to the buyer. The bid price share is calculated by dividing the bid price of the buyer by a predetermined required bidder number. An auction ends earlier than scheduled according to predetermined early auction ending conditions if an upper limit price is set for the item and the auction ends normally after a predetermined auction duration if an upper limit price is not set for the item. It is determined whether a successful bid is made on the item according to the auction type after the auction ends. Some of bidders are selected as a lottery participating set according to the auction type if a successful bid is made on the item. A winning bid price is determined for the item and a winning bidder is determined among the lottery-participating set in a predetermined lottery picking method.

BRIEF DESCRIPTION OF THE DRAWINGS

The above and other objects, features and advantages of the present invention will become more apparent from the following detailed description when taken in conjunction with the accompanying drawings in which:

FIG. 1 is a schematic flowchart illustrating the whole auction process according to the present invention;

FIGs. 2A and 2B are flowcharts illustrating the details of the auction process according to the present invention; FIG. 3 is a display example illustrating an embodiment of an auction item search procedure;

FIG. 4 is a display example illustrating an embodiment of a bidding procedure;

FIG. 5 is a display example illustrating an embodiment of a bid number assignment procedure;

FIGs. 6A, 6B, and 6C illustrate examples of bidding cases according to auction types;

FIG. 7 illustrates an example listing of bidders for an item;

FIG. 8 illustrates the whole configuration of an auction system over a network according to an embodiment of the present invention; and

FIG. 9 is a block diagram of a hardware structure for an auction site shown in FIG. 8.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT A preferred embodiment of the present invention will be described hereinbelow with reference to the accompanying drawings. In the following description, well-known functions or constructions are not described in detail since they would obscure the invention in unnecessary detail.

FIG. 8 illustrates the whole configuration of an auction system over a network according to an embodiment of the present invention. The auction system is comprised of a web server (hereinafter, referred to as an auction site) 1 for storing programs of executing auctions in a predetermined procedure and control operations at the same time, terminals (or computers) 2 manipulated directly by buyers, and teπninals (or computers) 5 manipulated directly by sellers.

The terminals 2 and 5 can be connected to the Internet (i.e. an IP network) 6 through Internet service providers 3 and 4. The terminals 2 and 5 are typical personal computers each having a main body with a CPU and a memory (ROM/RAM), a display like CRT, a keyboard, a mouse, a floppy disk drive, a CD-ROM driver, and a MODEM. Or personal terminals such as cellular phones, PDAs, and laptops can be used as the terminals 2 and 5. The buyers are individuals or wholesalers or retailers who trade products on line or off line. The web server 1 provides services including, for example, insurance subscription, travel participation, or shopping and reserves cyber money according to members' site use records.

FIG. 9 is a detailed block diagram of a hardware structure for the auction site 1 shown in FIG. 8.

Referring to FIG. 9, a CPU 91 provides overall control to the auction site. A ROM 92 stores a fixed program or fixed parameters for the CPU 91. A RAM 93 stores temporary data generated during programs executed in the CPU 91.

The program area of the RAM 93 includes a membership management module 93 a for performing member registration and authentication, a transaction processing module 93b for processing transactions generated from the auction site, and auction processing modules 93c to 93f. The auction process modules include an item registration module 93 c, a bid registration module 93 d for processing bid registrations from buyers, a winning price determination module 93 e for determining final prices with bidding particulars according to auction types, and a winner determination module 93f for determining a winning bidder in a predetermined lottery method.

An external storage 94 is a large capacity memory comprised of a hard disk, a floppy disk, a CD-ROM, and a DVD. The database area of the external storage 94 includes a membership management database 94a for managing membership information and an auction management database 94b for managing auction items. The membership management database 94a stores information about the addresses, names, ages, genders, birthdays, phone numbers, jobs, hobbies and etc. of members and manages reserved cyber money. The auction management database 94b manages information about auction items, including auction type, item title, quantity, minimum bid price, upper limit price, auction duration, and ship-to locations.

A communication processor 95 is a wired/wireless one for supporting communication between the auction site, the buyer terminals, 2 and seller terminals 5. An input interface 96 is a data input means connected to a mouse

96a as a pointing device and a keyboard 96b. An output interface 97 is a data output means connected to a display 67a like a CTR or an LCD and a printer 96b for hard copy printing.

The modules 93a to 93f of the RAM 93 defrning the features of the auction site 1 will be described in more detail.

The membership management module 93 a registers a buyer connected via the terminal 2 and the Internet 6. The membership management module 93a stores the personal information of the buyer in the membership database 94a, authorizes the buyer to participate in auctions, issues an ID and a password for him (or registers him as a member), and notifies the registration result to the terminal 2 of the buyer. Meanwhile, the membership management module 93 a authenticates a member connected through the Internet 6, that is, provides authorization to the buyer if the ID and password of the buyer are registered in the membership management database 94a.

The transaction processing module 93b processes electronic transactions (shopping, events, entertainments, and etc.) made by a member connected through the Internet and reverse cyber money according to his use records of the auction site. For example, if a member purchases a product, the transaction processing module 93b reserves a portion of the price in cyber money. If a user looks at banner ads or participates in events, the transaction processing module 93b allows him to accumulate points in cyber money. The sum of accumulated cyber money is managed in the membership management database 94a and can be redeemed for auction participation fee (or share of bid price).

The item registration module 93 c registers item information input by a seller in the auction management database 94b of the auction site 1. The item information includes, for example, auction type, item title, quantity, minimum bid price, upper limit price, auction duration, shipping-to-locations and the like. Auction types according to the present invention are a general type, an upper limit price type, a small profits and quick returns type, and a simultaneous bidding type. Upon registration of the item information, the item registration module 93 c makes (or updates) an item list as shown in FIG. 3, that is, adds new registered items to the item list.

The bid registration module 93 d receives a bidding application from a buyer and assigns a bidding number to him. Here, the bid registration 93 d calculates a share of bidding expense by dividing his bid price by the required bidder number, comparing the sum of his accumulated cyber money with the share of bidding expense, and assigns a bidding number if the accumulated cyber money is more than the share of bidding expense. If the cyber money is less than the bidding expense share, the user is asked whether he will deposit the difference. If he will, he is assigned a bidding number. The member applies for bidding through such a display shown in FIG. 4 and views the resulting bidding number list shown in FIG. 5 through his terminal. The winning price determination module 93 e determines a plurality of bidders that will draw lots and at least one winning bid price according to a registered auction type. Auction types available are general type lottery-auction, upper limit price lottery-auction, small profits and quick returns lottery-auction, and simultaneous bidding lottery-auction. Here, their equal shares of the winning bid price are refunded to bidders that are excluded from the lottery- participating set and lottery refund determined according to the winning bid price is paid to the lottery-participating bidders. If an item doesn't sell, its seller can relist the same item with changed auction terms in relation to auction type, minimum bid price, auction duration and the like. Or the auction site 1 can relist the item automatically in a predetermined way.

The winner determination module 93f determines a winning bidder among the plurality of selected lottery-participating bidders by lots according to predetermined rules. For example, the winner determination module 93f determines a winning bidder with information on the bid prices, bidding time, bidding numbers, and security numbers of the bidders. Determination of lottery-participating bidders, a winning bid price, and a winning bidder according to auction types will be described later.

An auction process according to the embodiment of the present invention will be described in detail in connection with the structures shown in FIGs. 8 and 9. FIG. 1 is a flowchart illustrating the whole operation of the auction process according to the present invention.

Referring to FIG. 1, a member is connected to an auction site-only server over the Internet in step S101 and enters his information to the site in step S102. Step S101 is performed in the membership management module 93 a. The member initiates an electronic trade, for example by shopping in step S103. In step S104, cyber money is accumulated for the member for the electronic trading.

Steps S103 and S104 are performed in the transaction processing module 93b. The member is connected to a lottery-auction service in step S105 and searches items registered in the auction site in step S106. In step S107, the member selects an item and places a bid on the item, which occurs in the bid registration module 93d. The auction site ends bids in step S108. In step S190, the auction site determines lottery-participating bidders and a winning bid price. Steps S108 and S109 are performed in the winning price determination module 93 e. In step SI 10, a winning bidder is determined among the lottery- participating bidders by lots, which occurs in the winner determination module

93f. The winning bidder receives the item in step Sill.

To describe important steps in more detail, in step S102, the member enters his ID and password and the membership management module 93 a registers the member information in the membership management database 94a.

In step S 103, the member carries out electronic trading through the Internet, for example, by taking out an insurance, purchasing a vacation package, and shopping. In step SI 04, the transaction processing module 93b accumulates a predetermined amount of cyber money for the member. Steps S105 and Sill are essential parts of the present invention, which will be described with reference to FIGs. 2A and 2B.

FIGs. 2A and 2B illustrate the auction process according to the embodiment of the present invention. Referring to FIGs. 2A and 2B, the member is connected to the auction site by entering his ID and password to receive a lottery-auction service through the Internet in step S201.

In step S202, a seller is connected to the auction site and registers an item by filling an auction type 312, the title of the item for sale 303, the number of items 304, a minimum bid price 305, an upper limit price, an auction duration, and shipping-to-locations, and the item registration module 93 c registers the input item information in the auction management database 94b. Here, auction items include any kind of salable goods such as movables, real estates, services and the like. The auction site itself as well as members can register items for sale. Minimum bid price is the desired lowest price that a seller sets for an item.

The minimum bid price serves as a starting bid price and can be bidden to boost interest in the auction. Upper limit price is a price specified when a seller registers his item for sale to allow a buyer to buy the item immediately without having to wait for the auction to end if the buyer meets the specified price. Item registration varies slightly depending on auction types. In the general type lottery-auction, a seller fills a minimum bid price when he registers an item. If the auction duration expires and the auction ends, a required number of lottery-participating bidders 306 are selected sequentially in a descending order of bid prices, the lowest bid price of them is determined as a winning bid price, and the lottery-participating bidders pay their equal shares of the winning bid price. Then, a winning bidder is selected from the lottery participants by lots. In the upper limit lottery-auction, the seller fills both a minimum bid price and an upper limit price when he registers his item. When the specified upper limit price is met, the auction immediately ends before its period and a winning bidder is determined by lots. Thus, the item can be sold earlier. In the small profits and quick returns lottery-auction, as the seller registers more items, a minimum bid price for the items drops. The seller starts by listing the highest bid price and drops it as buyers place more successful bids until the end of the auction. Then, the seller values each of the successfully bidden items at the lowest bid price and as many winning bidders as the successfully bidden items are selected from the lottery participants. In the simultaneous lottery-auction, a plurality of sellers list the minimum bid prices and the number of items for sale in the auction site and buyers place bids on the items. After the auction ends, when a minim bid price set on the seller's side reaches a bid price set on the buyer's side after sequentially matching the lowest minimum bid prices of the sellers to the highest bid prices of the buyers, the same minimum bid price is set for all the items. Then, as many winning bidders as the number of items are selected among lottery-participating bidders by lots. This is similar to the simultaneous bidding in stock trading. Determination of a winning bid price according to the four types will be described in more detail in connection with a winning bid price determination step S218.

In step S203, the item registration module 93c lists the auction type 312, an auction number 301, a registration date 302, an item title 303, the number of items 304, a minimum bid price 305, the number of required bids 306, the number of current bids 307, an ending time 308, and a winner announcing time 309 as shown in FIG. 3. The required number of bids 306 is the number of bidders preset among which the whining bid price of an item is equally shared and which is notified as the number of lottery-participating bidders to buyers. This plays an important role in determining the wining bid price and can be determined by the auction site or the seller in step S202 according to auction types.

In step S204, a buyer views the item list shown in FIG. 3 to search for a desired one. Details of the item list vary slightly according to the auction type 312. In the case of simultaneous bidding lottery-auction, since a plurality of sellers are not supposed to disclose minimum bid prices, a current market price or the wirming bid price for the previous auction is instead displayed as a reference by which the buyers place bids.

In step S205, if the buyer selects a desired item, clicks its item selection area 310, and then presses a confirmation button 311, a lottery-auction bidding form is displayed as shown in FIG. 4. After the buyer checks item mformation 403, he fills a bid price 402 and presses a bidding button 401. The bid price 402 is a maximum bid price that the buyer is willing to pay for the item. The bid price 402 is valid only when it surpasses the minimum bid price 305. However, in the case of simultaneous bidding lottery-auction, any bid price is valid regardless of the minimum bid price specified by the seller. If one buyer places a plurality of bids on the same item at the same price, he can be allowed to enter the number of bidding accounts together with the bid price 402.

hi step S206, the auction site compares the sum of cyber money for the buyer with a share of a winning bid price. If the cyber money is more than the bid price share, the auction site subtracts the bid price share from the cyber money and assigns him a bid number in step S207. If the cyber money is less than the bid price share, the auction site asks the buyer if he will deposit the difference in step S208. After the buyer deposits the difference in cash or electronic money, or by a credit card in step S209, he is assigned the bid number 501. As shown in FIG. 5, the bid number list notifies the buyer of the item information 403, the auction number 501, a bidding date 502, and a winning bid price share 503. As mentioned before, the winning bid price 503 is calculated by dividing the bid price 402 by the number of required bidders 306. The winning bid price share 503 is temporarily deposited and price adjustment and refund will take place in steps S217 and S218 after lottery-participants are selected and a winning bid price is determined.

In step S210, it is determined whether the auction type of the item is the upper limit price lottery-auction. If an upper limit price is set, the procedure goes to step S211 and otherwise, it jumps to step 213.

In step S211, it is determined whether the auction ends earlier. This applies only to the upper limit price lottery-auction. If the number of bidders placing the bid price 402 over the upper limit price is the same as the required bidder number 306, it is declared that the auction ends earlier. Otherwise, the auction proceeds until the end of the auction duration in the same manner as the general type lottery-auction. Taking an upper limit price lottery-auction case

604 shown in FIG. 6A for better understanding, an upper limit price is 1300 won and 100 bids are required. It is determined whether the number of bidders that bid 1300 won or more for an item is 100 to end the auction before the end of the auction duration 308 at the moment.

In steps S212, the auction ends earlier than expected. This applies only to the upper limit price type lottery-auction like step S211. When more bidders than the required number 306 bid the upper limit price or more for the item, the upper limit price can be a winning bid price without having to receive any more bids. Therefore, the seller immediately ends the auction without waiting until the end of the auction duration 308. In this case, the upper limit price is determined as the winning bid price and the procedure goes to step S219 to determine a winning bidder among the upper limit or higher price bidders. The early auction ending of the upper limit price type lottery-auction is designed fast auction-based transactions. The upper limit type lottery-auction is characterized by addition of an upper limit price to the general type lottery-auction to thereby determine lottery-participating bidders and a wmning bid price earlier. To help understanding of this process, let's look at the upper limit price type lottery- auction case 604. When 100 lottery-participating bidders are chosen in the order of the highest bid price, the lowest bid price is 1300 won. Since the upper limit price 1300 won becomes a winning bid price without having to receive any more bids, the auction can end immediately even before the end of the auction duration.

In step S213, the seller determines whether the auction duration period 308 set when he registers his item for sale has expired. If it has, the procedure goes to step a normal auction-ending step S214 and otherwise, he continues to receive bids in step S205.

In step S214, the auction site deletes the item of interest from the item list shown in FIG. 3 at the end of the auction duration 308 to prevent further bids on the item. This step applies to all the auction types except an earlier ended upper limit price type lottery-auction.

In step S215, it is determined whether a successful bid was made on the item for which the auction ended normally. In the general type lottery-auction, it is determined that a successful bid was made only when more bidders than the required number 306 bid the minimum bid price 305 or higher prices until the end of the auction duration 308, as shown in case 1 (601) of FIG. 6A. If the number of bidders is less than the required number as shown in case 2 (602) and case 3 (603), and if the required number of or more bidders participate in the auction until the end of the auction duration but less bidders than the required number bid the minimum bid price or higher prices, it is determined that the item doesn't sell. In case 3 (603), the minimum bid price is not known to the end of the auction. In the upper limit price type lottery-auction, step S215 is performed only when an early successful bid is not made on the item. In this case, the determination as to whether the item is sold or not is made in the same manner as for the general type lottery-auction.

In the small profits and quick returns type lottery-auction, three cases can be generated as shown in case 1 (611) to case 4 (614) of FIG. 6B: whole successful bids 611 and 612, partial successful bid 613, and whole failed bid 614. If the number (350) of buyers that bid a rninimum bid price 800 won or higher prices until the end of the auction is a total required bidder number (300) or greater, it is judged that all items are sold, as shown in case 1 (611) and case 2 (612). Here, the total required bidder number is calculated by multiplying the total number of minimum bid price bidders by the number of (3) items. As shown in case 4 (614), when (80) bidders less than a required bidder number

9100) for a first item unit bid a highest minimum bid price (or starting bid price 1000 won) or higher prices, it is judged that none of the items are sold. If (270) buyers more than a required bidder number (200) for a second item unit but less than a required bidder number (300) for a third item unit place bids in the auction until the end of the auction, it is judged that the first and second items are sold but the third item is not sold, as shown in case 3 (613).

Before presenting a description of the simultaneous bidding type lottery- auction, a term "sufficient bid price" will be defined for clarity of description. When higher bidders are grouped on a required bidder number basis in a descending order, the lowest bid price of each group is called the sufficient bid price for the group. After an auction ends, a successful bid is determined by matching the lowest minimum bid price to the highest sufficient bid price sequentially in opposite ways. Successful bids are declared when a contact price 2000 won where the rninimum bid price meets the sufficient bid price exists as shown in case 1 (621) and case (622) of FIG. 6C and when there is no contact price but the highest minimum price 1900won is lower than the lowest sufficient bid price 2100 won as shown in case 3 (623) of FIG. 6C. On the other hand, if the lowest rninimum bid price 2000 won is higher than the highest sufficient bid price 1800 won and thus there is no contact price as shown in case 4 (624) of FIG.

6C, or when the total number of bidders is less than a required bidder number per item unit and thus no sufficient bid price is formed, it is declared that no successful bids are made. Then, the auction site returns the bid price share 503 to each bidder.

In step S216, the seller, when his items don't sell, re-lists them with modifications to auction terms like auction type, minimum bid price, and auction duration or the auction site automatically re-lists them in a predetermined method. In step S217, some of bidders are authorized to draw lots for the items after step S215. In the selection of the lottery-participating bidders, higher priority is given to bid prices and then bidding time. This will be described according to the auction types. In the general type lottery-auction, when the number of bidders that bid the rninimum bid price 305 or higher prices until the auction end time 308 is equal to or greater than the required bidder number 306, the required number of higher bidders are selected in a descending order. If a plurality of bidders bid the same bid price, priority is given to earlier bidders. In case 1 (601) of FIG. 6A, 100 bidders that submit a bid price of 1200 won or higher prices are determined to draw lots. In the upper limit price type lottery- auction, step S217 is performed in the same manner as the general type, unless a successful bid is made before the auction period expires. In the small profits and quick returns type lottery-auction, the same rules are applied to pick the lottery-participating set. In case 3 (613) of FIG. 6B, since a successful bid is made on two items, 200 bidders should be picked up. According to the bid price rule, 210 bidders that bid 900 won or higher prices are selected on the assumption that 90 bidders all bid 900 won, and then according to the bidding time rule, 10 later bidders are excluded from the set. In the simultaneous bidding type lottery-auction, the same rules are also applied. In case 2 (622) of FIG. 6C, since five items are sold at 2000 won, 550 bidders that bid 2000 won or higher prices are selected according to the bid price rule and then 50 later bidders are excluded from the selected set. Therefore, 500 lottery-participating bidders are finally determined.

In step S218, a winning bid price is determined, which varies markedly according to the auction types. The winning price determination mechanism can be used to identify an auction type. In the general type lottery-auction, the lowest bid price of the lottery-participating bidder set is determined as a wirming bid price. In case 1 (601) of case 1, the lowest bid price of the 100 selected bidders is 1200 won. Therefore, the winning bid price is 1200 won. In the upper limit price type lottery-auction, step S218 is performed in the same manner as the general type unless the auction is closed earlier than scheduled.

In the small profits and quick returns type lottery-auction, a wmning bid price is determined basically in the same way as the general type. While the minimum bid price becomes lower as the number of items on which successful bids are made is increased, the lottery-participating bidders are determined according to the number of sold items after the auction regardless of the mimmum bid prices set when bids are placed, and then the lowest bid price of the lottery-participating bidders is determined as the winning bid price for the items. In case 2 (612) of FIG. 6B, bids are placed on the first item unit at the minimum bid price of 100 won and on the third item unit at the minimum bid price of 800 won. But since all the three items are sold, the 300^th highest bid price (three items x required bidder number 100 per unit) among 350 bid prices is determined as the winning bid price and buyers are supposed to purchase the three items at the same price, between 800 and 900 won in this case. One more point to be noted in the small profits and quick returns type lottery-auction is that the minimum bid prices of sellers can be treated as upper limit prices. This method can be considered as an auction type in which as more items are sold, the upper limit price is lowered. If all items for sale are sold out, the auction can be closed earlier than scheduled. In case 1 (611) of FIG. 6B, the winning bid price will be determined to be 800 won if the minimum bid price is treated as an upper limit price, as compared to the original small profits and quick return type where the whining bid price is 1000 won or higher. If there are 300 bidders before the auction end time, the auction can be closed at the moment.

In the simultaneous bidding type lottery-auction, it is determined whether a successful bid was made by matching higher rninimum bid prices to lower sufficient bid prices sequentially, and a contact price where the rninimum bid price is identical to the sufficient bid price is determined to be a winning bid price. In case 1 (621) of FIG. 6C, minimum bid prices and the number of items are listed in the left column for an item specified by the auction site and bid prices and the number of bidders are in the right column. The lowest minimum bid price of the sellers is 1800 won for one item. It is determined that the item is sold by matching the highest sufficient bid price 2200 won to the lowest minimum bid price 1800 won. Then, a minimum bid price 1900 won is matched to a sufficient bid price 2100 won for another item and then a minimum bid price 2000 won is matched to a sufficient bid price 2000 won for two items. Thus, the successfully bidden four items are valued at the contact price 2000 won. In case 2 (622) of FIG. 6C, a minimum bid price 1800 won is matched to a sufficient bid price 2200 won for an item, a minimum bid price 1900 won is matched to a sufficient bid price 2100 won for two items, and then a minimum bid price 2000 won is matched to a sufficient bid price 2000 won for two items.

Therefore, the winning bid price for the five items is 2000 won. On the other hand, in case 3 (623) of FIG. 6C, there is no single contact price formed but a successful bid is made. The highest rmnimum bid price of sellers is 1900 won and the lowest sufficient bid price of buyers is 2100 won. In this case, the winning price is set as 1900 won according to a minim bid price rule or 2100 won or between 1900 and 2100 won according to a bid price rule.

As described above, step S218 is the feature that identifies the auction types and an essential part to the present invention which enables the winning bid price of an item to be determined reasonably according to the competitive bidding principle in auction by varying the winning bid price according to the bid prices 402 submitted by a plurality of bidders.

In step S219, the auction site pays back the bid price share 503 to losers in the lottery set picking of step S217, calculates a bid price share to be imposed on each lottery-participating bidder by dividing the winning bid price by the required bidder number per item 306, and refunds the difference between the bid price share and the bid prices 402 higher than the winning bid price to corresponding bidders. The difference is calculated by subtracting the bid price share determined by the winning bid price from the bid price share 503 paid by the lottery-participating bidders.

In step S220, the auction site determines as many winners for the items as the items on which a successful bid was made among the lottery-participating bidders in a predetermined method. This lottery system must be transparent and rehable. For reliable lottery picking, the winners are selected using the bid prices, bidding times, bidding numbers, and security numbers of the bidders. Referring to the bidder list shown in FIG. 7, the auction site notifies a method of determining a whining number considering the required bidder number 306 before the auction. If two digit-numbers are used for 50 required bidders, the second digit of the 25^th highest bid price is designated as the first digit of the winning number and the second digit of the 40^th highest bid price as the second digit of the winning number after the auction. In FIG. 7, since the second digit of the 25^th highest bid price (702), that is, 43,700 won is 3 and the second digit of the 40^th highest bid price (704), that is, 39,000 won is 9, the winning number is 39. To determine the winning number, the auction site can use selectively or in combination the bidding time, bidding numbers, and security numbers of the bidders aside from their bid prices. Or the auction site may freely change the digits of the bid price and bidding time that will form the winning number. As shown in FIG. 7, the winning number can be constituted by the last digit of minutes in a bidding time, the last digit of a bidding number, and the second digit of a security number.

Meanwhile, in case the winning number cannot be found from the bidding numbers (or drawing numbers) of the bidders, lottery picking will continue until a winner comes from the lottery-participating bidders. In FIG. 7, if a bidder with a bidding number 39 is not selected to draw lots, there is no winner. Therefore, a new winning number must be produced. For this purpose, the bid prices increased by one level can be used to form a winning number. That is, the second digit 5 of the 24^th highest bid price (701) 45,000 won and the second digit 1 of the 39^th highest bid price (703) 41,000 won are picked to determine a winning number as 51. A prior notice must be given about this lottery system for further rounds of lottery picking.

In the case where as many bidders as successfully bidden items must be selected as in the small profits and quick returns type lottery-auction, as many combinations to form a winning number is preliminarily notified before the auction. When winners are determined, the bidder list shown in FIG. 7 is open to see the process of determining the winning number, thereby ensuring transparency and reliability in the winner determination and preventing would-be disputes as well.

As an alternative to drawing numbers, the lottery-participating bidders are ranked in a descending order of bid prices. If there are the same bid prices, a priority is given to a lower bidding number. The bid prices of the lottery- participating bidders are summed and the sum is divided by a bidding unit. Then the result is divided by the number of the lottery-participating bidders and the remainder is added to "1". The bid price rank corresponding to the resulting value is determined as a winning number.

For example, if the sum of the bid prices is "4,017,000 won", the bidding unit is "1000 won", and the number of the lottery-participating bidders is "20", 1) 4,017,000 ÷ 1000 = 4,017

2) 4017 ÷ 20 = (quotient 2000, remainder 17)

3) 17 + 1 = 18 (winning number)

In the case where as many winners as successfully bidden items are to be determined as in the small profits and quick returns type lottery-auction, the first winner is determined in a different way from the above-described method and the following winners are selected in the following way. First, the bid price of the aheady-determined winner is subtracted from the sum of the bid prices of the lottery-participating bidders. The difference is divided by a bidding unit, the result is divided by the number of the lottery-participating bidders, and the remainder is added to "1". Then, the resulting number is determined to be a whining number. If the higher winner is again selected as a winner this time, the higher bidder is selected according to bid price ranks as a winner. In this case, the last bid price rank is considered one level higher than the first bid price rank. Meanwhile, if the new winner is also a higher winner, the above procedure continues.

In step S221, a bidder checks whether he is a winner or not and if he won, he receives an item in step S222. Upon delivery of the item to the buyer, the auction site pays corresponding amount of money to a seller.

FIG. 3 illustrates an example of the item search step S204. The display is provided when a member searches the list to detect his desired item. As shown in FIG. 3, the item list lists the auction numbers, registration dates, titles, quantity, minimum bid prices, required bidder numbers, current bids, auction end time, winner announcing time, and item selection areas of items for sale.

FIG. 4 illustrates an example of the bid submit step S205. When the member selects an item on which he will place a bid in the item list of FIG. 3, the display is given. He submits a bid by entering the bid price 402. FIG. 5 illustrates an example of the bidding number assignment step S207. By the bidding number assigning list, the member vies bis bidding number 501 with which he draws a number.

FIGs. 6A, 6B, and 6C illustrate bidding cases referred to for describing the successful bid determination step S215, the lottery-participating set determination step S217, and the winning bid price determination step S218.

FIG. 7 illustrates an example of bidder list referred to for describing the winner determination step S220.

As described above, the present invention subdivides internet-lottery auctions into a general type, an upper limit price type, a small profits and quick returns type, and a simultaneous bidding type, designs different auction methods for the auction types by using different winning price determination mechanisms, and provides a novel reliable lottery system.

The present invention boosts interest in members through the diverse auction types and increases reliability by the transparent lottery system. Therefore, more buyers and sellers are absorbed to thereby vitalize internet auction-based transactions and additionally determine winning prices for items reasonably according to the competition-based auction principle.

Claims

WHAT IS CLAIMED IS:

1. An Internet lottery-auction device comprising: an item registration module for registering item information including auction type for an item for sale of a seller connected through the Internet in a database; a bid registration module for receiving a bid from a buyer connected through the Internet, receiving a bid price share from the buyer, and assigning a bidding number to the buyer, the bid price share being calculated by dividing the bid price of the buyer by a predetermined required bidder number; a winning price determination module for ending an auction according to a predetermined rule corresponding to the auction type, selecting some of bidders for the item as a lottery-participating set, and determining a winning bid price for the item; and a winner determination module for determining a winning bidder among the lottery participating set in a predetermined lottery picking method.

2. The Internet lottery-auction device of claim 1, wherein auction types are a general type lottery-auction, an upper limit price type lottery-auction, a small profits and quick returns type lottery-auction, and a simultaneous bidding type lottery-auction.

3. The Internet lottery-auction device of claim 1, wherein the bid price share is paid in cyber money that the buyer accumulates in the site.

4. The Internet lottery-auction device of claim 3, wherein if the cyber money is less than the bid price share, the winning price determination module asks the buyer whether the buyer will deposit the difference and assigns the bidding number to the buyer if the buyer deposits the difference.

5. The Internet lottery-auction device of claim 1, further comprising a membership management module for issuing membership to a user connected through the Internet and authenticating a member connected through the Internet.

6. The Internet lottery-auction device of claim 5, further comprising a transaction processing module for processing transactions generated while a member connected through the Internet uses the site and accumulating cyber money produced according to use of the site for the member.

7. The Internet lottery-auction device of claim 1, wherein the wirining price determination module refunds the bid price share to losers from the lottery-participating set and refunds an amount of money from the bid price share according to the winning bid price to the lottery-participating bidders.

8. The Internet lottery-auction device of claim 1, wherein the winner determination module determines a winning bidder using the bid prices, bidding time, bidding numbers, and security numbers of the bidders.

9. An Internet lottery-auction method comprising the steps of: registering item information including auction type for an item for sale of a seller connected through the Internet in a database; receiving a bid from a buyer connected through the Internet, receiving a bid price share from the buyer, and assigning a bidding number to the buyer, the bid price share being calculated by dividing the bid price of the buyer by a predetermined required bidder number; ending an auction according to a predetermined rule corresponding to the auction type, selecting some of bidders for the item as a lottery-participating set, and determining a winning bid price for the item; and determining a winning bidder among the lottery participating set in a predetermined lottery picking method.

10. The Internet lottery-auction method of claim 9, wherein auction types are a general type lottery-auction, an upper limit price type lottery-auction, a small profits and quick returns type lottery-auction, and a simultaneous bidding type lottery-auction.

11. The Internet lottery-auction method of claim 9, wherein the bid price share is paid in cyber money that the buyer accumulates in the site.

12. The Internet lottery-auction method of claim 11, wherein if the cyber money is less than the bid price share, the winning price determination module asks the buyer whether the buyer will deposit the difference and assigns the bidding number to the buyer if the buyer deposits the difference.

13. The Internet lottery-auction method of claim 9, further comprising the step of issuing membership to a user connected through the Internet and authenticating a member connected through the Internet.

14. The Internet lottery-auction method of claim 9, wherein the lottery picking is performed using information about bid price, bidding time, bidding number, and security number.

15. An Internet lottery-auction method comprising the steps of: registering item information including auction type for an item for sale of a seller connected through the Internet in a database; receiving a bid from a buyer connected through the Internet, receiving a bid price share from the buyer, and assigning a bidding number to the buyer, the bid price share being calculated by dividing the bid price of the buyer by a predetermined required bidder number; ending an auction earlier than scheduled according to predetermined early auction ending conditions if an upper limit price is set for the item and ending the auction normally after a predetermined auction duration if an upper limit price is not set for the item; determiriing whether a successful bid is made on the item according to the auction type after the auction ends; selecting some of bidders as a lottery participating set according to the auction type if a successful bid is made on the item; deterrmning a winning bid price for the item; and determining a whining bidder among the lottery participating set in a predetermined lottery picking method.

16. The Internet lottery-auction method of claim 15, wherein auction types are a general type lottery-auction, an upper limit price type lottery-auction, a small profits and quick returns type lottery-auction, and a simultaneous bidding type lottery-auction.

17. The Internet lottery-auction method of claim 15, wherein the lottery picking is performed using information about bid price, bidding time, bidding number, and security number.

18. The internet lottery-auction method of claim 15, wherein the bid price share is paid in cyber money that the buyer accumulates in the site.

19. The Internet lottery-auction method of claim 18, wherein if the cyber money is less than the bid price share, the winning price determination module asks the buyer whether the buyer will deposit the difference and assigns the bidding number to the buyer if the buyer deposits the difference.

20. The Internet lottery-auction method of claim 18, wherein the item information includes information about auction type, item title, mimmum bid price, upper limit price, auction duration, and shipping-to-locations.