DESIGN OF AN INTERNET-BASED SYSTEM FOR REMOTE DUTCH AUCTIONS

Outlines the principle of the Dutch auction, whereby the price begins at a high level and decreases by steps until a bid is made. Describes an integrated hardware and software system which uses Internet communi cations to enable remotely located bidders to participate in real-time Dutch auctions and which meets the stringent requirement that synchro ny be maintained among bidders' terminals to ensure that each bidder h as a fair chance to bid al the current offer price, Defines the princi pal functions of the system and characterizes its available resources. Illustrates implementation using a prototype design. Pays particular attention to bidder terminal synchronization, bidder authentication,an d auction client security. Includes the possibility of a system varian t using ISDN interconnect and PC-based bidders' terminals.