United States Patent 7,562,044

7,562,044

System and method for dynamic pricing in an unbalanced market

Issued:  July 14, 2009

Assignee:  i2 Technologies US, Inc. (Dallas, TX)

Inventors:  Tenorio; Manoel (Mountain View, CA)

Abstract:   An electronic marketplace includes one or more computers supporting a market. There are fewer participants on a first side of the market than on a second side. Participants on the first side have a greater market capacity than market participants on the second side. Offers on the first side are inaccessible and offers on the second side are accessible to the participants. Offers are received from participants on the first side and participants on the second side. Each offer includes an offered price and an offered quantity. Any offers on the first side that include equal offered prices and any offers on the second side that include equal offered prices are prioritized according to a prioritization scheme, which determines the order in which they are matched with other offers. A first offer on the first side is matched with a second offer on the second side according to a relationship between offered prices associated with the first and second offers, and a strike price is determined based on the relationship.