WO2001090837A2

WO2001090837A2 - A method for mercantile negotiation participation

Info

Publication number: WO2001090837A2
Application number: PCT/IL2001/000478
Authority: WO
Inventors: Roy Shkedi
Original assignee: Almondnet, Inc.
Priority date: 2000-05-24
Filing date: 2001-05-24
Publication date: 2001-11-29
Also published as: IL136334A0; AU6262401A; WO2001090837A3

Abstract

A method for mercantile negotiation participation is disclosed (see Fig. 1) that is especially useful in mercantile contracting forums, such as in electronic commerce where dynamic valuation capabilities are economically advantageous. The method is particularly valuable for transacting and trading in fungible and quasi-fungible commodities, including goods, services, and information (101). The method allows non-fungible commodities to be traded on the same basis as heretofore known fungible commodities. The method relates to the steps of defining a commodity as a plurality of attributes, assigning a respective mercantile evaluation function to at least two of the attributes, setting at least one temporal limit to at least one of the attributes, and forming a mercantile transaction authorization including the respective mercantile transaction authorization including the respective mercantile evaluation functions and at least one temporal limit and submitting the convoluted authorization to a mercantile contracting form.

Description

A Method for Mercantile Negotiation Participation

FIELD OF THE INVENTION

The present invention generally relates to mercantile methods. More specifically, the present invention relates to facile negotiation protocols for use in mercantile forums.

BACKGROUND OF THE INVENTION

Arriving at an economic evaluation for good or services generally demands a multivariate analysis. This evaluation process is further complicated in situations where the goods are perishable or the service has another critical timely component. Furthermore, in the presence of today's instant-time electronic commerce data- communications facilitation forums, the very act of implementing an evaluation may be a critically timely event; if the maximum profit is to be achieved from a resultant transaction decision.

For example, a variation of a derivatives market is a spot market. The spot market exists substantially as a function of a correction between pricing anomalies, which can occur. However, in the presence of near perfect almost real time information available from electronic commerce forums, these anomalies can be somewhat mollified; if not eliminated. Nevertheless, an essentially perishable aspect intrinsic to certain classes of good will remain a certain basis for spot markets.

Furthermore, it is a well know phenomenon in economic theory that the value of goods drops to zero at some known point in time. An example of this happens to unused container space when ships leave port. Space on the ship that previously was at a premium loses all economic value the moment the ship leaves with that space unfilled. A similar event takes place with air line tickets, where upon even premium first class transatlantic tickets represent no economic value once the air plane is in the air and the seats are unfilled. In response to this event, it is not uncommon to have ship owners, air lines, and even sellers of vegetables in a neighborhood market, lower their prices as the "deadline" for their goods' value approaches zero. The reason is very simple in that it is better to acquire even a marginal return on the sunken cost investment, rather than receive no return at all.

Electronic commerce both facilitates the expansion of spot markets and creates its own commodity to be included on spot markets. For example, once the telecommunications infrastructure is in place for increased electronic commerce, the non-use of any part of that telecommunications infrastructure on a 7 day, 24 hour per day usage globally represents economic waste. The result is the emergence of spot markets that sell excess capacity or unused bandwidth or under used "off peak" traffic capacity.

Similarly information generated in the course of electronic commerce can become a commodity which can be traded on the spot market. The knowledge of who wants to buy what and when can be bundled and traded amongst interested parties just as any other commodity.

Given this overwhelming need for mechanisms to improve the profitable utilization of spot markets, it is surprising that facile tools have not heretofore been developed to help larger communities of interested participants to express their respective mercantile intentions in the various existing mercantile forums, especially the real time electronic commerce forums. More specifically, there is a need in the art for facile mercantile negotiation tools and protocols that can be activated in automatic modes, as is critically necessary in today's economic commerce market place. Furthermore, there is a need for multivariate expressions of evaluation and intention to be expressed by parties interested in participating in mercantile forums, so that subsequent negotiation protocols may allow parties to arrive at mutually acceptable contracting situations.

ADVANTAGES, OBJECTS AND BENEFITS OF THE INVENTION

Technical Issues: The present invention allows pricing and negotiating of a commodity to be initiated according to a participant's own predefined attributes including respective economic evaluations thereof. Ergonomic Issues: By using the method of the present invention, a participant can specify any degree detail for the attributes that he chooses, or he can conform his level of details to any accepted specification standard. This facility is especially useful for mercantile forums where a contracting or transferring of the commodity that the participant is interested will be transacted; using a negotiation protocol. Economic Issues: Because use of embodiments of the present invention allow a participant to express his intentions for automatic electronic commerce transactions is an instant-time fashion, a substantially new and dynamic extension of the known spot market is thereby created.

SUMMARY OF THE INVENTION

The present invention relates to a method for mercantile negotiation participation, the method including the steps of: a) defining a commodity as a plurality of attributes; b) assigning a respective mercantile evaluation function to at least two of the attributes; c) setting at least one temporal limit to at least one of the attributes; d) forming a mercantile transaction authorization including i) the respective mercantile evaluation functions and ii) the at least one temporal limit; and e) submitting the convoluted authorization to a mercantile contracting forum.

Embodiments of the present invention allow a potential participant new versatility in most mercantile contracting forums, such as those that electronic commerce and the likes presently allow. The participant, using the method of the present invention, can express his intentions in terms of attributes of a commodity; such as may be selected from known categories of goods, services, or information. Furthermore, these intentions may be further categorized in terms of attributes of the commodity. Then, most importantly, the participant may designate these attributes as having respective values, either individually or in combination or when reconstituted into a unified multi attribute commodity.

According to the preferred embodiment of the present inventions, a negotiation authorization proxy may be attached to any attribute evaluation and to any aggregation thereof, thereby allowing the participant's participation in an mercantile forum to participate in a negotiable protocol for finding a mutually acceptable evaluation between two parties to an eventual contract.

Business to business provides a class of examples whereby users of the method of the present invention interact with a mercantile contracting forum.

One business to business example would be TV spots market where a target audience is defined by the advertiser as a set of attributes relating to characteristics of member(s) of that audience, and where each attribute is given a maximum price that the advertiser is willing to pay for it. Additionally, other attributes which may be specified and for which the advertiser will pay a given maximum are the geographical location where the ad will be shown and a specific content program. The advertiser might also attach a price tag which to a time function (i.e., the hour at which the ad will air). The media owner, on the other hand, defines the spot according to the attributes that define the audience of the different content programs. While generally prices for TV spots tend to rise as their time of broadcast nears, if they are not sold at the "last minute" (a pre- specified point in time by which the ad must be set), their prices drop. The media owner defines minimal prices for the different attributes, one of which may be a function of time. If the advertisers' bids exist in the market, the instant a TV spot becomes available, a match will be made between the advertiser and a spot as follows: the various maximum prices offered by the advertisers will be calculated according to the attributes that define the spot, and the highest bidder will receive the spot. If, however, there is no second bidder (i.e., only one advertiser bid for the spot), the advertiser will pay the minimal price defined by the media owner, which is derived from the prices set for the attributes that define the spot.

If, on the other hand, the TV spot is on the market before advertisers' bids are available, then the advertiser whose audience (as defined by the attributes in his bid) matches the TV spot audience (as defined by the media owner's attributes) will win the spot and pay the value of the spot, as determined by the respective costs of the attributes of the spot, as defined by the media owner. The total cost may include, of course, the cost of an attribute which is a time function or other attributes such as the advertiser's rating (a function of the advertiser's advertising budget.).

Another such example would be on-line ad space sale. Here, the defined attributes could include gender, age range, income range, or anything descriptive of the ad space, what surrounds or leads to the ad space, or any other information descriptive of the viewer (audience). In this case, the owner of the ad space must define prices for each of the attributes for the ad space and the intended audience. The owner may further include attributes such as the time until the ad is sent (broadcast), where an early purchase is less expensive than one allowing only a short notice until it must be sent. The owner may also include volume of ads as an attribute, where a larger purchase of ads may receive a discount, or a buyer rating, where the buyer's total budget will affect the price of the ad. An advertiser looking to place on an on-line ad for a particular audience, defined by specific attributes, may then call up a list of all such available ad spaces (ad spaces where the advertiser's attribute list partially or completely matches the list of attributes defined by the owner of the ad space). Rather than negotiating with multiple agents or owners of ad space, the advertiser may immediately view a list of ad spaces available, sorted according to attributes, including the price for each ad space. The advertiser may then purchase whichever of the spaces best accommodates the ad he wishes to place. The advertiser may furthermore adjust his specifications according to the attribute definitions laid out by the media owners, in order to accommodate a given budget or maximize his cost efficiency. The "negotiation," then takes place not between two people, but between predefined guidelines which are expressed by the attributes laid out by the media owners.

BRIEF DESCRIPTION OF THE FIGURES

In order to understand the invention and to see how it may be carried out in practice, embodiments including the preferred embodiment will now be described, by way of non-limiting example only, with reference to the accompanying drawings, in which:

Figure 1. illustrates a schematic view of method steps used in a basic embodiment of the present invention;

Figure 2. illustrates a schematic view of computer readable program code for causing a computer to perform the method steps used in a basic embodiment of the present invention; and

Figure 3. illustrates a schematic view of the program code of figure 2 as stored on a computer-readable medium.

DETAILED DESCRIPTION OF THE INVENTION

Generally, the present invention relates to a method for pricing and negotiating an item or a commodity, such as space on an Internet site, a physical article, a service, or an opportunity (e.g. advertising opportunity) according to its defining attributes within a given time frame. This method is especially useful when the item or commodity is perishable (e.g. food) or, alternatively stated, is time-limited (e.g. an advertising opportunity). It should readily be appreciated that services, as well as goods, may be perishable. For example, an unused portion of a production line's industrial capacity is not recoverable thereafter. Simply stated, this unused production capacity was a perishable commodity. This is likewise true for all services when measured against their full delivery capacity. An undelivered portion of service capacity is a perishable commodity that is not simply fungible with a subsequent service provision opportunity.

The present invention enables a buyer or a seller to specify a purchase or sale price either is willing to offer at a given moment, and how the price will change over time, including what it will be at any other given moment. The method, as illustrated in Figure 1, requires several steps: definition (101) of the item to be bought or sold according to its attributes, pricing (102) at least two of the attributes which were defined in the first step, setting a time frame (103) for the prices of the attributes which were set in the second step, authorizing a transaction (104) according to a calculation which incorporates the priced attributes and the time frame set in the previous steps, and submitting the transaction (105) to a mercantile contracting forum.

The method described here is particularly useful in cases where the price of an item may rise or fall according to conditions present at the time of the sale or purchase. For example, management at a hotel which is located in an area with many other hotels and which is not filled to capacity in a given period of time may wish to determine a system for lowering the prices on certain rooms in order to fill them. Price reductions camiot be set too early, as that would limit ordinary reservations and full price rentals to walk-in guests. However, the hotel also faces a deadline after which it will have no possibility at all of filling the empty rooms. Hotel management must also consider the limits it wants to set on price reduction, as they do not want to sustain an actual loss on the room. Additionally, they must consider the different types of rooms it has in setting the prices of the rooms. The various room available according to the features of the rooms. After defining the features, several categories are determined: rooms with bathtubs and televisions, rooms without bathtubs but with televisions, rooms without bathtubs or televisions and suites, which always have both bathtubs and televisions. After the use rate of each category has been examined, it is concluded that rooms with bathtubs and televisions are most popular. Rooms without bathtubs but with televisions are next, followed by suites, and rooms without bathtubs or televisions are considered least desirable by the hotel's patrons. A basic price list is then compiled:

The cost of each room is then calculated according to the amenities it offers, and a schedule for rate reductions is determined, in an effort to fill as many rooms as possible without sustaining a financial loss. At 10 p.m. the night before any given date, the prices of the room and the features it offers begin to drop by 10% every four hours. When the television reaches $10.50 (a 30% reduction in rate), its price is no longer reduced (i.e. the total price for a room with a television is reduced at a slower rate thereafter). At 10 p.m. on the specified date, the rates are no longer reduced. Modifications to the rates are posted automatically to the hotel's reservations computer and any other computer connected to it (e.g. a travel agency). When a patron makes a reservation, the up-to-date rate appears automatically and is charged to the customer's credit card upon payment for the room. Thus, the commodity is hotel rooms, and the attributes which define it are type (room or suite) and features available in it (bathtub, television). Each attribute has an assigned value, and the value of the total commodity (the rooms) changes within a specified time frame (from 10 p.m. on a night A to 10 p.m. on night B, the following night, for rooms to be occupied on night B). The rate for any given room at a given moment in that time frame is determined by the type of room and the features offered in the room, as well as by the time, and the final price is submitted in the form of a credit card transaction.

Another example would be a flower market. The flowers may be defined by attributes such as their type, color, and rarity, as well as age, delivery time, transportation method, and so on. A potential buyer may bid for certain types of flowers by setting a maximum for each attribute and perhaps a maximum total. A time factor may be also considered either as an attribute (the hour of the day or the day of the week or the calendar day at which the flowers will be available) or time may be used simply as a "true/false" type attribute here (flowers are needed on Monday, the 22^nd, before which they cannot be accepted and after which they are entirely useless). A buyer may bid according to the set attributes, and the purchase may be made automatically based on availability.

It is worth noting that in this system, a time factor may be applied in several different ways. There may simply be a deadline for the transaction which may specify that the transaction must take place after a given time or event, before a given time or event, or both. For instance, an agricultural commodity will be available after it is harvested or picked, but it will be available only until a certain point (because it is perishable or the seller has an alternative market, etc.) Alternatively, price may be affected by time because one or more of the attributes is time dependent. For instance, the cost for television advertising changes depending on the time slot in question. Hence, one way of noting a time dependent price function is:

Price^:=:f(buyer_rating)*f(time)f(quantity)*∑ATTi(price) where ATTi is each attribute, which may also be a time dependent function.

An example where the item is both time dependent and perishable is the market for television spots, where the attributes include characteristics of the audience and the program surrounding the spot, but the time of broadcast, length of the spot, and date of broadcast are inseparable attributes. The price attached to the time of broadcast varies greatly according to the time of day. The date of broadcast affects the price because usually the price of the spot rises, until the broadcast time is so close that it must be sold at almost any cost, at which point the cost drops drastically.

On the purchaser's side, the method of the present invention offers a means for shopping for or bidding on an item. A person looking for a hotel room in a particular city for a given night may search a database containing listings of various rooms available in the city. Using this method, the customer specifies the attributes he is seeking, and the value he places on each attribute. For example, he may specify that he is looking for a single room in a price ranging up to 45. If the room has a bathtub, he is willing to pay up to an additional $8, and for a television in the room he will pay up to an additional $12. If the room is located in a particular neighborhood, he is willing to add another $10.. However, the total price of the room may not exceed $65. The customer wants as many of the specified features as possible without exceeding the total budget or the maximum price for any given item. Using this, the most appropriate available hotel room can be found, and reservations can be made. Thus, as in the previous example, the commodity is a hotel room. The attributes here are identical (type of room and the amenities offered in the room) with the addition of the location of the hotel as an attribute. Each attribute has been valued, and the temporal limit is the date for which the room is needed. Calculations can be made and the room with the given attributes at the given value can then be found. Reservation of the given room then becomes the submission of the authorization. In this example, any number of attributes could have been defined, and priority could have been placed in various ways on any single attribute or on multiple attributes. The location of the room could have been deemed to be a minimal requirement without which the other attributes are irrelevant. Conversely, an attribute can be less specific, as in a specification for a color, which requires "either red or yellow or green," any one of which satisfies the specification and is valued as the attribute. Alternatively, an attribute may have different value depending on how it is satisfied. For instance, the person seeking a hotel may specify that he will pay up to $8 more for a bathtub, but if the bathtub is a Jacuzzi, he will pay up to another $10.

This method may be applied to any type of mercantile negotiation, including buying and selling, leasing, and renting. (The term's buyer and seller are used here generically. They refer also to a proprietor and renter or to a lessor and lessee.) It may be used for any commodity that can be defined in terms of attributes, which can be valued, and a limiting time frame. An advertising slot on television or radio may be defined in terms of the time of the slot, with the other attributes being the type of program during which it occurs and/or the audience associated with the program, the rating of the program, and the length of the slot. Each attribute alters the price of the slot, depending on specifications. An item available for purchase may be defined in terms of the type of item, the size of the item, the color of the item, and the material from which the item is made, provided each of these attributes can be valued individually and directly affects the total price of the item. Unlike simply placing a bid on a blue cotton sweater which has an opening price of $15, this method offers a means of searching an bidding for any sweater which is made of blue cotton, where depending on the customer's priorities, the fact that it is cotton may be secondary and for which the customer is not willing to offer more than a given amount.

Another application of the present invention may be in a situation where bidding is required. Since the commodity or object that is up for bidding has been defined in terms of its attributes, each bidder may assign values to the attributes according to personal priority. While for one bidder certain attributes are of the highest priority and he is willing to substantially increase his bid based on them (e.g. early 1900's, American, first edition book), for another bidder, these may be of secondary importance or completely insignificant, and his calculation of a bidding increment may be based on attributes, all, some, or none of which may overlap with the attributes important to other bidders (e.g. a book by a particular author, signed by the author, with no tears or missing pages). Each of the bidders will consider all of the attributes, but will apply the method of the present invention and the value of each attribute will be assigned according to individual preference, thus creating a different price for each and yielding a bidding system tailored to the specific needs or desires of each individual bidding.

The calculation of price according to the method of this invention may involve factors other than a commodity's direct attributes. Any number of factors may affect the price of the commodity, and the method allows these to be taken into account as the price is increased or decreased. For example, within a specified time frame, market conditions, or the value of other items may affect the price of the commodity and may be taken into account along with the commodity's attributes. For example, the price of wheat is based on the wheat's protein content, size, and relative weight. However, the local price of the wheat is also affected by conditions that affect crops across the globe, such as weather conditions, pests, and diseases. In a given location, the price of wheat may also be affected by the price of rice, either locally or in another location, as well as by a currency exchange rate. In another example two individuals may be bidding against each other for the purchase of a certain item. While each has stipulated his own calculations of the value of certain attributes of the items, one may wish to add a proxy to the bidding increment, or a factor which will make his next bid less predictable for the other individual. In this system, these factors may be included in the price calculation of any commodity.

The method of the present invention does not affect a transaction. The method here is for calculating a price and authorizing the purchase or sale of a commodity. The purchase or sale may still be subject to other limitations imposed by the terms of the authorization. For example, a travel agent may reserve an airline ticket for a specified date at a given price; the price having been calculated according to the ticket's attributes (e.g. coach class, non-smoking, from origin A to destination B). However, the reservation may be cancelled if the agent fails to issue the ticket by a certain time on a certain date. A customer making a purchase of an item sought and ordered over the Internet at a certain price, according to specified attributes (e.g. a sweater which is blue, cardigan, cotton, machine washable) may contract to pay a the specified amount for the item found. However, the payment is contingent on delivery of the item within 72 hours of the order. In another example, a factory buyer may automatically search for a needed item based on the item's attributes and the values assigned to those attributes. Even after negotiating a sale, however, the sale will not be final or binding unless the buyer issues a purchase order with a number within a specified number of hours or days. Thus, the calculation of the price, negotiation of a contract or authorization, and the submission of the authorization does not otherwise restrict terms and conditions of the purchases or sales, which it yields.

Another type of example wherein the present invention may be embodied relates to a production line owner will be looking to have his line working in full capacity in return for maximum revenues. The price required by the production line owner will be determined according to several attributes, among them, the estimated available capacity at the requested time of production, the requested quantity, the buyer rating (determined by the buyer's total orders), the produced product's characteristics from the manufacturing perspective (such as required raw material) and so forth. If there is only one buyer, he will pay the minimum price set by the production line owner for the attributes that fit his required needs. If two buyers compete over the production line capacity in the same dates then the highest bidder win. According to the various embodiments of the present invention, assigning an evaluation function includes all of the following: fixing a maximum price, fixing a minimum price, fixing a maximum price and fixing a minimum price, or fixing (a) an initial price and (b) a time dependent equation for changing the price thereafter. Thus, the assignment of a value to a given attribute or to the collection of attributes as a whole may be defined as specifying a maximum price for the attribute or the collection (e.g. the purchaser is willing to pay no more than $50), or it may be defined as specifying a minimum (e.g. the item will be sold for no less than $35), or it may be defined as a maximum and a minimum together (e.g. a bidder is willing to make an opening offer of $40 and bid as high as $60). A used car dealer may apply the method of the current invention to his cars according to make, model, year, size class, number of doors, whether the car has a radio, and whether the car has an air conditioner. Using these, the minimum price for each car is determined, and asking price for each car is calculated. The values of the attributes and the total value of each car changes periodically, as new cars arrive at the lot and as time passes and certain cars remain unsold. When a customer arrives to purchase a car, he too has considered the car's various attributes using this method, and he has determined the maximum that each is worth to him. Thus, when the car dealer attempts to persuade an individual to take one — more expensive — model rather than another, the dealer will encounter a staunch refusal but when he attempts to persuade the customer to pay extra for an air conditioner, the customer is more willing to submit to the dealer's offer. The customer's priorities have allowed him to determine the value of each of the attributes, and he may negotiate with the car dealer accordingly. The customer's offer, which may be initially rejected by the dealer, may become attractive a week later when the car remains unsold in the lot. As such, the dealer has determined a minimum price based on the car's attributes, and the customer has assigned a maximum price to the same car. For each, however, the price may change at a specified time or may continue to change until a specified time. Ultimately, the actual conditions of a sale are the subject of methods, terms, and conditions of a designated mercantile forum, with whom both sides of a transaction have established respective procedural agreements. According to a variation on the embodiment specifying that assigning a mercantile evaluation the attributes constitutes fixing an initial price and a time dependent equation for changing the price thereafter, fixing an initial price includes: a) specifying at least one external independent commodity and at least one quantified aspect thereof, b) specifying a function for calculating the initial price, c) accessing said quantified aspects, and d) calculating the initial price using at least one quantified aspect and the function for calculating.

According to this variation, the initial price of a commodity is dependent not only on it direct attributes, but on external factors such as the rate of currency exchange, the price of another item locally or elsewhere, the availability of alternative, and so on. The external factor must be taken into account when calculating the value of the commodity. For example, cow feed may be valued according to the components it contains. Each component may be defined as an attribute, thus allowing the buyer or the seller to determine its value accordingly. However, the cost of a grain not included in the feed may affect the cost of the feed. The farmer shopping for feed may thus determine that he wants a mixture of wheat, corn, and cottonseed in a particular proportion. The farmer determines the value of each component to allow him to gauge the price for specific variations on the proportions of the desired mixture. The farmer then specifies that if the price of barley drops by at least 2%, the price of all feeds must drop by at least 1%. Accordingly, when the farmer is negotiating the final purchase price, he checks the price of barley to ascertain whether it has dropped, and calculates the value of the feed accordingly. In a similar manner several factors may be included in the total value of a commodity. Multiple factors may include a currency exchange rate, shipping tariffs and time, and so on.

According to another variation on the embodiment specifying that assigning a mercantile evaluation the attributes constitutes fixing an initial price and a time dependent equation for changing the price thereafter wherein fixing a time dependent equation includes specifying a) an external independent function and b) a interval for monitoring changes in the external independent function Given the example of the farmer buying feed, the price considerations can be viewed also from the seller's side. While the farmer buying the feed makes one purchase at a time, and he can check the price of barley before the purchase, the seller must make several transactions per day, for each one of which the independent factor, the price of barley, must be considered. The price of barley may rise and fall during a given day or it may vary several times during the course of a week or a month. The seller therefore must determine how often he will check the price of barley and adjust the price of his grain feed accordingly. The seller may decide, for example, to check once or twice a day, once or twice an hour, or upon each transaction.

Another embodiment of the present invention relates to the method for negotiation wherein assigning the evaluation function includes specifying a total aggregate price negotiation proxy. A proxy allows the buyer or seller to automatically authorize a price change, and this authorization may be to change the price by a certain amount or until it reaches a specified maximum or minimum. For example, where a hotel room is being offered over the Internet between the hours of 8:00 and noon, authorization may be given to decrease the price of the room every half-hour by a given amount. At noon the price will have reached it's absolute minimum, and no further negotiation will be made on the price. Alternately, a person participating in an on-line auction may specify that until his bid reaches a total of $57.50; it may be raised automatically by increments of $2.00.

An additional embodiment of the present invention relates to the negotiation method wherein assigning the evaluation function includes specifying a price negotiation proxy for at least one attribute. In this case, someone looking to purchase percale sheets, preferably blue cotton, may specify in advance that she is willing to increase her purchase price only according to the thread count of the sheets. She performs an automated on-line search, specifying that if the sheets are of a 120 thread count, she is willing to spend $25-$40 on the sheets (depending on the exact attributes of the sheets, such as the exact color, type of cotton, etc.), but the price of the sheets may be higher if the sheets are of a higher thread count. Pre- authorization is given to order the sheets, provided they fall within the given category. The search/order engine is additionally authorized to pay an extra $5 for each jump in the thread count of the sheets (i.e. $30-$45 for a 180 thread count, $35- $50 for a 200 thread count, and so on).

According to a variation of the embodiment wherein assigning the evaluation function includes specifying a price negotiation proxy for at least one attribute, specifying includes setting a total aggregate price limit. The total aggregate price limit is set, in this case, for an individual attribute. Accordingly, the buyer looking to buy blue cotton sheets, who is willing to spend extra for a higher thread count, may specify that the total "added value" for the thread count may not exceed $15. Thus, the maximum price for the sheets may be $40-$55, even if the sheet have an extraordinarily high thread count. The proxy given allows an order to be placed automatically if sheets meeting the designated specifications are found.

This manner of limiting the price is especially useful if a buyer knows that a particular feature or attribute of a product will affect the product's functionality only to a given point, beyond which the differences in the feature are indistinguishable. For example, a computer use for looking to purchase a modem may know that the telephone wires to which the modem will be connected cannot transmit beyond a certain speed. To search for a new modem, the person specifies that the modem must be internal, made by a particular company, offering voice capability. Next, a corresponding value or range of values is attached to each attribute. The final attribute specified is the speed, but instead of simply attaching a value to a given speed, the computer user specifies that an additional sum may be added for each jump in the speed of the modem, up to a given amount, corresponding to the maximal speed at which the wires can transmit, since from a practical standpoint, that will be the maximum speed no matter how fast the modem is. The entire specification is sent to a bidding forum, and when a modem meeting the specifications is found, a pre-specified opening bid is made, following which the user's bid is automatically incremented until it reaches the maximum specified for the speed. Another embodiment of the present invention relates to the mercantile negotiation method, wherein assigning the evaluation function includes specifying a) a total aggregate price negotiation proxy, or b) a price negotiation proxy for at least one attribute.

Here, the determination of the highest price a buyer is willing to pay or the lowest price a seller is willing to accept is determined by specifying both a total maximum (or minimum) price, or by specifying a maximum (or minimum) for a particular attribute. For example, an automobile dealer, deteπnined to dispose of cars which do not have air conditioning may create a pricing system in the computer, which will automatically change according to the criteria he specifies, thus enabling all of his salespeople to negotiate with customers without consulting him. Each car is given a price range according to features it offers, and discounted automatically each day, depending on the offers received for it. After the starting price is set for each car, the dealer specifies that the cars will be discounted by $200 per day, up to a pre-set limit. Additionally, the sales people are authorized to negotiate with customers, but under no circumstances may they sell the car at less than 70% of its original price.

According to the several variations of the embodiment wherein assigning the evaluation function includes specifying either a total aggregate price negotiation proxy, or a price negotiation proxy for at least one attribute, specifying a price negotiation proxy includes authorizing a use of said proxy in fixed increments iterations, authorizing a use of said proxy in randomized micro-payment increments iterations, or authorizing a use of said proxy in predetermined incremental percent iterations.

Thus, the buyer or seller may pre-authorize a change in price using a fixed incremental change, a random incremental change, or a percentage of the price as the increment for change. In a bidding situation, a buyer may feel confident that if his bid is raised by fixed or percentage increments, he will not overpay for the product, since the bid will not rise unless another, higher bid is offered. However, is very competitive bidding, a bidder may want to prevent other bidders from gaining an edge on him by predicting his next bid. In this situation, the bidder may pre-authorize a random bid, which cannot be predicted by others. Likewise, in a sale situation, a price may be reduced automatically at specific points by a specified amount or by a percentage of the price. In a competitive situation, however, when a seller must place his product as one of many offered for sale, a random price change may be more effective, thereby preventing competitors from being able to predict and undermine price cuts. The random price change may be set to create a given average price change which is effected through random price increases and decreases.

According to the several additional embodiments of the present invention, setting at least one temporal limit includes all of the following: specifying an initial mercantile interest moment, specifying a final mercantile interest moment, or specifying an initial mercantile interest event, specifying a final mercantile interest event, and a) specifying either an initial mercantile interest moment or an initial mercantile interest event, and b) specifying either a final mercantile interest moment or a final mercantile interest event.

Setting a temporal limit gives an indication on the time frame during which the buyer or seller are interested in buying or selling the product at hand. A buyer may be willing to spend an increasing amount in order to purchase something in time for a holiday or a birthday, at which point if the item has not been purchased it will become useless. Thus, the holiday or birthday becomes a final mercantile interest moment. Likewise, a seller may wish to dispose of holiday merchandise when the holiday has arrived or passed (e.g. "day after Christmas" sales), or of theme merchandise when the theme is not current (e.g. "end of season" sales). For the consumer and buyer alike, each of these offers an initial mercantile moment, or a point in time at which the seller will begin to lower prices and the consumer will be willing to pay less. Likewise, interest in a particular item or a particular class of items may be determined by an event. Tickets to an event may be sold at increasingly high prices until the event is sold out, the sell-out thus being the final mercantile interest event. The advancement of a team to a sports championship may prompt sales of items with the team's logo, such as clothing and mugs. The team's advancement is thus an initial mercantile interest event. In some cases, both an initial point or event and a final point or event will be specified. A reduction on heating equipment may begin on May 1 and end on September 1. Alternatively the sale may begin when the general temperature rises above a certain point and end when the temperature drops back below a certain point. Or a combination of these may be made: A sale may begin on May 1 and end when the temperatures drop below a certain point.

Likewise, an advertising spot on television or radio, for instance, is clearly limited by temporal values. Regardless of the other attributes that define the spot and according to which it will be bid on and sold, any given spot is on a specific date at a specific time. The seller may therefore be willing to drastically reduce the price of the spot after a given point as the time of broadcast draws nearer. This may be similarly applied to a factory looking for a specific part that is produced by others. The factory may need the part on a given day within a given time frame. The bid may be placed according to the attributes of the part, and the amount to be spent will be determined, in part, by the proximity of the date on which the part is needed to the date on which the part is ordered. When the bid is placed, the buyer will be shown where the part may be obtained within the specified price frame and time frame and at what price. The buyer may then ascertain, based on the sellers' descriptions, whether greater cost efficiency may be achieved by altering specific attributes, such as the quantity to be purchased.

Another embodiment of the present invention relates to the mercantile negotiation method wherein forming a mercantile transaction authorization includes specifying a negotiation conclusion condition. Various types of conditions for the conclusion of a negotiation may exist, any or all of which may exist in addition to specifications on how the price of an item will change. For example, following negotiations, a seller may be required to ship an item within a given time frame. Alternatively, the transaction authorization may stipulate that the buyer must pay in a specified manner (e.g. by credit card, by money order, or by wire transfer) or within a given time frame. The item sold may require authentication, certification, or licensing, or a financial guarantee may be required. According to this embodiment, any or all of these and other conditions may be specified and until they are fulfilled the negotiation will not be concluded, even if the parties agree on a price. According to several variations on the embodiment stating that forming a mercantile transaction authorization includes specifying a negotiation conclusion condition, the negotiation conclusion condition includes all of the following: fixing a predetermined term for delivery, fixing a predetermined term for payment, setting a final moment for closing a mercantile agreement, setting a final event for closing a mercantile agreement, and setting a predetermined protocol for negotiating between two parties to a contract between them. Thus, someone seeking an item may specify the attributes and value of each attribute and that the item must be delivered within three days. Though an item may be found with the given attributes at the given price, the transaction may never be concluded because the item does not arrive on time, thus causing the buyer to refuse the item and deny payment. In other cases, a condition may simply cause a different conclusion to be reached, rather than none at all. A pizza parlor may have a special on certain pizzas according to the toppings on the pizza. The pizzeria guarantees its deliveries to be within 30 minutes, following which the pizza is given to the customer for free. Thus, though a minimum price is set for each pizza based on its toppings, the pizza may be given free to the customer if the delivery is delayed. Likewise, there may exist a specified term for payment. In a bidding forum a "winner" may be required to pay for his merchandise within 36 hours of winning the bid. Failure to pay within 36 hours causes the transaction to be voided. Conditions may be time or event dependent. For example, the transaction may be concluded automatically 48 hours after a price agreement is reached. Alternatively, the transaction may be concluded when payment clears the bank. Any of these constitutes a condition for concluding an agreement and may be included in specifications for a commodity along with pricing specifications. Another type of condition that may be set for the conclusion of a negotiation may be the protocol used for the conclusion. For example, a buyer performing an automated search for a product may specify the attributes desired and the values of each of the attributes. In addition the buyer may specify that he is not willing to purchase through any forum which requires him to put up a guarantee. Thus, the transaction will not be concluded in any such forum, despite the fact that the object may be found at one of them, including all of the desired attributes at the best offered price.

According to the various embodiments of the present invention forming a mercantile transaction authorization includes all of the following: specifying a buyer interest in the commodity, specifying a seller interest in the commodity, specifying a lessor interest in the commodity, and specifying a lessee interest in the commodity. As such, buyers, sellers, lessors, lessees, renters, and proprietors can use the method of the current invention. A buyer, renter, or lessee may use the method to search for a commodity within a certain price range, or not costing more than a given amount, or at the best price. The buyer, renter, or lessee may use this method to determine a maximum price for a given item. A seller, proprietor, or lessor, on the other hand, may use this method to determine the price of a given item at any given moment, when it will rise or fall, and what is the minimum price for which an item or commodity will be sold. Thus, the first step in a negotiation may simply be to state intentions to buy, sell, rent, or lease, and this may be included along with financial stipulations, which are used in the negotiation.

Another embodiment of the present invention relates to the mercantile negotiation method wherein forming a mercantile transaction authorization includes specifying a minimum configuration of requisite attributes from the plurality of attributes. A minimum configuration of requisite requirements may include one or more attributes from those specified. For example, a person seeking blue cotton flannel pajamas is not interested in finding blue cotton flannel sheets. Despite the fact that values have been attached to blue, to cotton, to flannel, and to pajamas, and theoretically, the replacement of pajamas by sheets can be negotiated into the price, the transaction cannot be completed, because the buyer has specified a minimum requirement of pajamas. The buyer may specify multiple attributes as a requirement. For instance, the buyer may specify blue, cotton, flannel, pajamas, size 10, with size 10 and pajamas forming a minimum requirement. The authorization to complete the transaction will not be given for anything in size 4, 8, 14, or any size other than 10, nor will it be given for anything other than pajamas. Using a minimum configuration is one way that the buyer or seller may place emphasis on a particular feature, giving it particular weight in the cost. For the customer searching for blue cotton flannel pajamas, the "pajama" attribute may be given a large value, as compared with the "blue," the "cotton," and the "flannel" attributes. The total cost will then remain proportional to its non-negotiable attributes.

According to various embodiments on the present invention, defining a commodity includes restricting the commodity to a class of goods, restricting the commodity to a class of services, restricting the commodity to a class of information, and restricting the commodity to a class of data-content media. The first step in specifying the commodity as a set of attributes may be to specify the class to which it belongs. This class, which then becomes the item's (or commodities) first attribute may be a class of goods (e.g. clothing or dresses), a class of services (e.g. gardening and landscaping or automobile repairs), a class of information (e.g. non-fiction or 18^th century European novels), or a class of data-content media (e.g. book or videotape). This is especially useful for searching for a commodity or an item in an automated manner, as is done with a search engine. For example, a user may seek newspaper pictures (media class) of fires in a particular metropolitan area between certain dates, where each attribute has a certain value, which can be increased, or decrease according to specified criteria. Alternatively, a person may wish to subscribe to an on-line magazine (information class). The person may specify that it must be a parenting magazine and the price that the person is willing to pay may increase depending on how frequently the magazine is published.

According to several variations on the embodiment stating that defining a commodity includes restricting the commodity to a class of information, restricting the commodity includes: limiting the commodity to a class of profile specific attributes, accepting a visitor at an Internet site as an advertising opportunity commodity, accepting a broadcast spot in a TV schedule as an advertising opportunity commodity, and accepting a broadcast spot in a radio schedule as an advertising opportunity commodity. The definition of a commodity as a class of information may be further broken down. One way of doing this is to limit the class to a sub-class with specific attributes, such as bitmap formatted pictures or French books published in Braille. Another type of limitation on the class of information can be demonstrated in the case of Internet "banner" advertisements. The commodity being sold is an advertising opportunity: advertising space and time on the screen of a user with a certain user profile. The information being specified here is information about the user, which may be broad and non-specific, or it may be detailed and very specific. For example, a particular host may require users to register in order to use a site. As part of the registration process, the user divulges information such as gender, age, ethnic group or religion, education and financial status. This information may be given specifically (e.g. age 25, Caucasian, Masters of Fine Arts, earning $15,000 annually) or it may be more generalized (e.g. 20-30, Caucasian, graduate degree, earning $10,000-$25,000 annually). Using such information, the host may target specific advertisers, and the advertisers may target specific audiences, thus making such information valuable to them. Even in the case where the user gives no specific information, advertisers may target a specific audience user by knowing that the user has visited a particular type of Internet site and how often the user has visited. The Internet visitor's profile thus becomes the class of information.

In a similar manner, an advertiser may purchase a television or radio broadcast spot according to information about the spot. The information in this case may include the hour of the spot, its length, the program, type of program, and rating of the program during which it occurs, and the target audience of the program. All these may be defined as attributes of the advertising spots, and the acceptance of the spot constitutes a restriction to a class of information.

The present invention additionally relates to an article of manufacture including a computer usable medium having computer readable program code embodied therein for A Method For Mercantile Negotiation Participation, the computer readable program code in said article of manufacture including: a) first computer readable program code for causing a computer to accept a defining of a commodity as a plurality of attributes; b) tied to the first computer readable program code, second computer readable program code for causing the computer to accept assigning of a respective mercantile evaluation function to at least two of the attributes; c) tied to the second computer readable program code, third computer readable program code for causing the computer to accept a setting of at least one temporal limit to at least one of the attributes; d) tied to the third computer readable program code, fourth computer readable program code for causing the computer to accept a forming of a mercantile transaction authorization including i) the respective mercantile evaluation functions and ii) the at least one temporal limit; and e) tied to the fourth computer readable program code, fifth computer readable program code for causing the computer to accept a submitting of the convoluted authorization to a mercantile contracting forum.

As illustrated in Figure 2, a computer program to apply the mercantile negotiation method of the present invention may be written, and this program would perform all of the steps previously noted (201, 202, 203, 204, and 205). The program, stored on a computer-readable medium, such as a floppy disk or a hard disk, a CD, or a flash memory card, takes information provided by the user regarding desired attributes and their values, relevant time limits, the calculation to be used in determining the total value of an item, the ability to adjust the calculation as available data changes, and the ability to complete the transaction (e.g. via the Internet). An individual may use such a program to perform an extensive search for one item. A professional buyer, however, could use such a computer program to automatically replenish stock items by having searches and negotiations for the items begin automatically when the quantity in stock drops below a given point. A seller may, on the other hand, use such a program to automatically generate or retract sale prices and discounts. At a hotel, for example, all of the necessary information and criteria to the program may be input in advance. When occupancy falls below a given point or when rooms remain empty for a certain date, the program may be operated automatically (using a search mechanism to determine which rooms new prices must be calculated). Aside from a room's ordinary attributes, the program may include an attribute that automatically discounts for certain travel agents or companies based on their ordinary volume of business or based on a large booking. Finally, the current invention relates to a program storage device readable by machine, tangibly embodying a program of instructions executable by the machine to perform method steps for Mercantile Negotiation Participation, said method steps including: a) defining a commodity as a plurality of attributes; b) assigning a respective mercantile evaluation function to at least two of the attributes; c) setting at least one temporal limit to at least one of the attributes; d) forming a mercantile transaction authorization including i) the respective mercantile evaluation functions, and ii) the at least one temporal limit; and e) submitting the convoluted authorization to a mercantile contracting forum.

Simply put, this is any computer readable storage device, such as the one illustrated in Figure 3 (303), or such as a floppy disk or a CD, containing program code for a program written to apply the method of the current invention.

The present invention has been described with a certain degree of particularity, however those versed in the art will readily appreciate that various modifications and alterations may be carried out without departing from either the spirit or scope, as hereinafter claimed.

Claims

1. A method for mercantile negotiation participation, the method including the steps of: a) defining a commodity as a plurality of attributes; b) assigning a respective mercantile evaluation function to at least two of the attributes; c) setting at least one temporal limit to at least one of the attributes; d) forming a mercantile transaction authorization including i) the respective mercantile evaluation functions and ii) the at least one temporal limit; and e) submitting the convoluted authorization to a mercantile contracting forum.

2. The method according to claim 1 wherein assigning the evaluation function includes fixing a maximum price.

3. The method according to claim 1 wherein assigning the evaluation function includes fixing a minimum price.

4. The method according to claim 1 wherein assigning the evaluation function includes fixing a maximum price and fixing a minimum price.

5. The method according to claim 1 wherein assigning the evaluation function includes fixing a) an initial price and b) a time dependent equation for changing the price thereafter.

6. The method according to claim 5 wherein fixing an initial price includes a) specifying at least one external independent commodity and at least on quantified aspect thereof, b) specifying a function for calculating the initial price, c) accessing said quantified aspects, and d) calculating the initial price using the at least one quantified aspect and the function for calculating.

7. The method according to claim 5 wherein fixing a time dependent equation includes specifying a) an external independent function and b) a interval for monitoring changes in the external independent function

8. The method according to claim 1 wherein assigning the evaluation function includes specifying a total aggregate price negotiation proxy.

9. The method according to claim 1 wherein assigning the evaluation function includes specifying a price negotiation proxy for at least one attribute.

10. The method according to claim 9 wherein specifying a price negotiation proxy for at least one attribute includes setting a total aggregate price limit.

11. The method according to claim 1 wherein assigning the evaluation function includes specifying a) a total aggregate price negotiation proxy, or b) a price negotiation proxy for at least one attribute.

12. The method according to claim 11 wherein specifying a price negotiation proxy includes authorizing a use of said proxy in fixed increments iterations.

13. The method according to claim 11 wherein specifying a price negotiation proxy includes authorizing a use of said proxy in randomized micro-payment increments iterations.

14. The method according to claim 11 wherein specifying a price negotiation proxy includes authorizing a use of said proxy in predetermined incremental percent iterations.

15. The method according to claim 1 wherein setting at least one temporal limit includes specifying an initial mercantile interest moment.

16. The method according to claim 1 wherein setting at least one temporal limit includes specifying a final mercantile interest moment.

17. The method according to claim 1 wherein setting at least one temporal limit includes specifying an initial mercantile interest event.

18. The method according to claim 1 wherein setting at least one temporal limit includes specifying a final mercantile interest event.

19. The method according to claim 1 wherein setting at least one temporal limit includes a) specifying either an initial mercantile interest moment or an initial mercantile interest event, and b) specifying either a final mercantile interest moment or a final mercantile interest event.

20. The method according to claim 1 wherein forming a mercantile transaction authorization includes specifying a negotiation conclusion condition.

21. The method according to claim 20 wherein specifying a negotiation conclusion condition includes fixing a predetermined term for delivery.

22. The method according to claim 20 wherein specifying a negotiation conclusion condition includes fixing a predetermined term for payment.

23. The method according to claim 20 wherein specifying a negotiation conclusion condition includes setting a final moment for closing a mercantile agreement.

24. The method according to claim 20 wherein specifying a negotiation conclusion condition includes setting a final event for closing a mercantile agreement.

25. The method according to claim 20 wherein specifying a negotiation conclusion condition includes setting a predetermined protocol for negotiating between two parties to a contract between them.

26. The method according to claim 1 wherein forming a mercantile transaction authorization includes specifying a buyer interest in the commodity.

27. The method according to claim 1 wherein forming a mercantile transaction authorization includes specifying a seller interest in the commodity.

28. The method according to claim 1 wherein forming a mercantile transaction authorization includes specifying a lessor interest in the commodity.

29. The method according to claim 1 wherein forming a mercantile transaction authorization includes specifying a lessee interest in the commodity.

30. The method according to claim 1 wherein forming a mercantile transaction authorization includes specifying a minimum configuration of requisite attributes form the plurality of attributes.

31. The method according to claim 1 wherein defining a commodity includes restricting the commodity to a class of goods.

32. The method according to claim 1 wherein defining a commodity includes restricting the commodity to a class of services.

33. The method according to claim 1 wherein defining a commodity includes restricting the commodity to a class of information.

34. The method according to claim 1 wherein defining a commodity includes restricting the commodity to a class of data-content media.

35. The method according to claim 34 wherein restricting the commodity includes limiting the commodity to a class of profile specific attributes.

36. The method according to claim 34 wherein restricting the commodity to a class of data-content media includes accepting a visitor at an Internet site as an advertising opportunity commodity.

37. The method according to claim 34 wherein restricting the commodity to a class of data-content media includes accepting a broadcast spot in a TV schedule as an advertising opportunity commodity.

38. The method according to claim 34 wherein restricting the commodity to a class of data-content media includes accepting a broadcast spot in a radio schedule as an advertising opportunity commodity.