U.S. patent application number 13/928684 was filed with the patent office on 2014-06-05 for fuel offering and purchase management system.
The applicant listed for this patent is Goldman, Sachs & Co. Invention is credited to Michael Kirch, Saurabh H. Sanghvi, Daniel Sharfman.
Application Number | 20140156351 13/928684 |
Document ID | / |
Family ID | 39827815 |
Filed Date | 2014-06-05 |
United States Patent
Application |
20140156351 |
Kind Code |
A1 |
Kirch; Michael ; et
al. |
June 5, 2014 |
FUEL OFFERING AND PURCHASE MANAGEMENT SYSTEM
Abstract
The present disclosure is directed towards apparatuses, systems
and methods to facilitate the pricing, sales and delivery of a
commodity fuel to a Customer. In one embodiment, the disclosure
teaches a Fuel Offer Generator that facilitates the purchase and
management of fuel offerings. The Fuel Offer Generator allows
Customers interested in securing fuel to obtain an offer for fuel
at lock-in prices for various tenors. Fuel Customers can buy these
fuel offers such that they may later exercise the fuel offers so
their fuel costs are locked-in at desired levels (e.g., they may be
set to strike prices). The Fuel Offer Generator also can establish
a Premium Price that will be part of the fuel offer. The Fuel Offer
Generator may generate hedges to counteract fuel related risks
stemming from fuel offer purchases. Ultimately, a customer that
purchases a fuel offering can exercise their fuel offering order at
a specified price and redeem any difference between the market
price for their purchased fuel and the price specified in their
fuel offering order. The Fuel Offer Generator determines which
metrics are relevant to pricing the fuel offering and then employs
those determined metrics to establish the pricing of fuel
offerings.
Inventors: |
Kirch; Michael; (New York,
NY) ; Sanghvi; Saurabh H.; (New York, NY) ;
Sharfman; Daniel; (New York, NY) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
Goldman, Sachs & Co |
New York |
NY |
US |
|
|
Family ID: |
39827815 |
Appl. No.: |
13/928684 |
Filed: |
June 27, 2013 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13336510 |
Dec 23, 2011 |
8478683 |
|
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13928684 |
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|
11733178 |
Apr 9, 2007 |
8121930 |
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13336510 |
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Current U.S.
Class: |
705/7.35 |
Current CPC
Class: |
G06Q 50/06 20130101;
G06Q 30/06 20130101; G06Q 30/0206 20130101; G06Q 40/04
20130101 |
Class at
Publication: |
705/7.35 |
International
Class: |
G06Q 50/06 20060101
G06Q050/06; G06Q 30/02 20060101 G06Q030/02 |
Claims
1-45. (canceled)
46. A processor-implemented method to generate fuel offerings for
selection by customers, comprising: setting a strike price for a
fuel offering; determining a premium price associated with the
strike price for the fuel offering based on the strike price and
pricing input factors; monitoring customer fuel offering orders and
exercises; storing information regarding the monitored customer
fuel offering orders and exercises as monitored information;
adjusting fuel offering prices based on the monitored information;
providing the fuel offering at an offer price comprised of the
strike price and premium price for selection by customers.
47. (canceled)
48. The method of claim 46, further, comprising: determining a
service markup price associated with the premium price for the fuel
offering.
49. (canceled)
50. The method of claim 46, wherein the strike price is based on a
determined metric.
51. The method of claim 50, wherein the determined metric is based
on a national average.
52. The method of claim 50, wherein the determined metric is based
on a multi-national average.
53. (canceled)
54. (canceled)
55. The method of claim 46, further, comprising: determining if the
strike and premium price are satisfactory by querying a historical
usage database for information to be used as a factor in
determining whether said strike and premium price are
satisfactory.
56. The method of claim 46, wherein the pricing input factors
comprise: fuel market information, historical analysis, offering
parameters, observable parameters and non-observable
parameters.
57. The method of claim 56, wherein the fuel market information may
include any of: a wholesale gasoline over-the-counter options
market, wholesale gasoline over-the-counter forward market and
futures market, retail gasoline spot prices.
58-61. (canceled)
62. The method of claim 46, wherein determination of the premium
price based on the pricing input factors, further includes:
obtaining the pricing input factors; employing the pricing input
factors in a commodity volatility model to generate a volatility
solution; and partially determining the premium price based on the
pricing input factors using the volatility solution as an input
into a pricing simulation.
63-65. (canceled)
66. The method of claim 46, further, comprising: obtaining a
customer order responsive to said fuel offering, the customer order
including specified parameters including at least a quantity of
fuel and a tenor.
67. The method of claim 66, wherein the specified parameters
further include a type of fuel.
68. The method of claim 66, wherein the specified parameters
further include a periodic usage limit.
69. The method of claim 46, further, comprising: reimbursing a
customer that exercises a customer fuel offering order.
70. The method of claim 69, further, comprising: storing exercise
information regarding the customer's fuel offering order exercise
in a historical usage database.
71-74. (canceled)
75. The method of claim 66, further, comprising: aggregating
customer fuel offering orders.
76. The method of claim 75, further, comprising: executing a hedge
for the aggregated customer fuel offering orders.
77. The method of claim 75, wherein the hedge employs a forward
contract.
78-99. (canceled)
100. The method of claim 46, further, comprising: aggregating
customer fuel offering orders; determining a sensitivity to said
offered strike and premium price; executing a hedge for the
customer fuel offering order based on the determined sensitivity to
said fuel offering strike and premium pricing.
101-103. (canceled)
104. A medium readable by a processor to generate fuel offerings
for selection by customers, comprising: instruction signals in the
processor readable medium, wherein the instruction signals are
issuable by the processor to: set a strike price for a fuel
offering; determine a premium price associated with the strike
price for the fuel offering based on the strike price and pricing
input factors; monitor customer fuel offering orders and exercises;
store information regarding the monitored customer fuel offering
orders and exercises as monitored information; adjust fuel offering
prices based on the monitored information; provide the fuel
offering at an offer price comprised of the strike price and
premium price for selection by customers.
105. (canceled)
106. An apparatus to generate fuel offerings for selection by
customers, comprising: a memory; a processor disposed in
communication with said memory, and configured to issue a plurality
of processing instructions stored in the memory, wherein the
instructions issue signals to: obtain a search query from a
searcher; set a strike price for a fuel offering; determine a
premium price associated with the strike price for the fuel
offering based on the strike price and pricing input factors;
monitor customer fuel offering orders and exercises; store
information regarding the monitored customer fuel offering orders
and exercises as monitored information; adjust fuel offering prices
based on the monitored information; provide the fuel offering at an
offer price comprised of the strike price and premium price for
selection by customers.
Description
FIELD
[0001] The disclosure relates generally to commodity management
systems and more particularly to apparatuses, systems and methods
for facilitating the pricing, sales and delivery of a commodity or
a commodity derivative to a customer.
BACKGROUND
[0002] The generally increasing and unpredictably fluctuating costs
of vehicle fuels, for example automobile fuels, have impacted both
private consumers and commercial businesses. Not only have fuel
prices risen steadily over the long term at rates that
significantly exceed the general cost of living, but fuel prices
also suffer significant short-term fluctuations due both to
predictable and unpredictable market forces.
[0003] Long-term, steady increases in fuel prices result from a
variety of influencing factors, including growing depletion of
fossil fuels, increasing costs associated with locating and
developing raw fuel materials, increasing pricing demands made by
oil-producing countries, and others as will be known to the
reader.
[0004] Short-term price fluctuations in fuel prices can result from
both predictable and unpredictable events. Summer travel is an
example of a predictable market demand event that typically causes
the price of vehicle fuel to fluctuate upwards at a time when the
increased cost has the most significant effect on a typical
purchaser. National and international conflicts and political
unrests in and amongst oil-producing countries are examples of
unpredictable events that often produce unexpected and volatile
increases in crude and hence processed fuel products.
[0005] These price fluctuations have significantly impacted many
purchasers. Automobile drivers find the cost of fuel prohibitive
for both business commuting and optional travel. Airlines have been
forced to significantly increase the cost of air transportation to
accommodate rising fuel prices. Service providers dependent on fuel
prices, for example taxis, trucking services, package delivery
services and others have all been forced to increase prices to
accommodate rising fuel prices.
[0006] Many consumers and commercial fuel users have taken
significant steps to control or diminish their fuel consumption.
More fuel-efficient vehicles have become available and put into
use. Unnecessary travel or fuel usage may be curtailed. Carpooling
and the use of public transportation have increased. These "green,"
environmentally friendly efforts may result in lower fuel usage and
hence lower fuel costs. However, they do not protect against the
ongoing, steady, long-term rise in fuel costs. Neither do they
offer significant help against unpredictable, short-term fuel price
fluctuations.
[0007] In general, it is quite difficult if not impossible for
parties dependent on fuel costs to plan and budget accurately and
appropriately for the ever-changing price of fuel, particularly
vehicle fuel. Some parties have engaged in pre-purchase programs of
automotive fuel, which is stored at specified filling stations for
subsequent pick-up and use by the parties. Such action require
purchase and storage of the fuel, and require the parties to pick
up the fuel from the storage location. For large, sophisticated
commercial practitioners, hedging is another method of controlling
the future cost of a commodity.
SUMMARY
[0008] The present disclosure is directed towards apparatuses,
systems and methods to facilitate the pricing, sales and delivery
of a commodity fuel to a Customer. In one embodiment, the
disclosure teaches a Fuel Offer Generator that facilitates the
purchase and management of fuel offerings. The Fuel Offer Generator
allows Customers interested in securing fuel to obtain an offer for
fuel at lock-in prices for various tenors. Fuel Customers can buy
these fuel offers such that they may later exercise the fuel offers
so their fuel costs are locked-in at desired levels (e.g., they may
be set to strike prices). The Fuel Offer Generator also can
establish a Premium Price that will be part of the fuel offer. The
Fuel Offer Generator may generate hedges to counteract fuel related
risks stemming from fuel offer purchases. Ultimately, a customer
that purchases a fuel offering can exercise their fuel offering
order at a specified price and redeem any difference between the
market price for their purchased fuel and the price specified in
their fuel offering order. The Fuel Offer Generator determines
which metrics are relevant to pricing the fuel offering and then
employs those determined metrics to establish the pricing of fuel
offerings.
[0009] In one embodiment, a method is disclosed for providing fuel
offerings, the method comprising: setting at least one commodity
offering terms for a commodity offering; determining at least one
commodity offering pricing value based on the at least one
commodity offering terms and at least one commodity offering
pricing model for the commodity offering; providing the commodity
offering, including at least one association based on the commodity
offering pricing values between a strike price and a premium, for
selection by a customer; and providing payment for some portion of
a commodity purchase for an exercised commodity offering, wherein
the strike price of the commodity offering is less than a
geographically averaged commodity price.
BRIEF DESCRIPTION OF THE DRAWINGS
[0010] The accompanying appendices and/or drawings illustrate
various non-limiting, example, inventive aspects in accordance with
the present disclosure:
[0011] FIGS. 1A-B illustrate aspects of an embodiment of the Fuel
Offering Generator;
[0012] FIG. 2 shows a top level information flow of a process for
creating and managing the execution of fuel offerings to one or
more Purchasers, according to one embodiment;
[0013] FIGS. 3A-B are of aspects of financial structure model
operation in particular embodiments of Fuel Offering Generator
operation;
[0014] FIGS. 4A-B illustrate operation of financial structure
pricing and price-pump model operation in respective embodiments of
Fuel Offering Generator operation;
[0015] FIGS. 5A-D illustrate operation aspects for some embodiments
of the Fuel Offering Generator;
[0016] FIG. 6 illustrates a fixed volume aspect of fuel offerings
in one embodiment;
[0017] FIG. 7 illustrates an aspect of fuel usage restrictions for
fuel offerings in one embodiment;
[0018] FIG. 8 illustrates an aspect of cap restrictions for fuel
offerings in one embodiment;
[0019] FIG. 9 illustrates an aspect of structural constraints of a
fuel offering in one embodiment;
[0020] FIG. 10 illustrates one embodiment of SPZ map
generation;
[0021] FIG. 11 illustrates further aspects of SPZ map generation
and management in one embodiment;
[0022] FIG. 12 illustrates aspects of SPZ pricing in one
embodiment;
[0023] FIGS. 13A-B illustrate aspects of withdrawal expiry
restrictions on offerings in one embodiment;
[0024] FIG. 14 shows an overview of one aspect of the multi-SPZ
fuel offering exercise in one embodiment;
[0025] FIG. 15 illustrates aspects of process flow for management
of Purchaser profile incentives and/or penalties in one
embodiment;
[0026] FIG. 16 illustrates further aspects of process flow for
management of Purchaser profile incentives and/or penalties in one
embodiment;
[0027] FIG. 17 illustrates further aspects of process flow for
management of Purchaser profile incentives and/or penalties in one
embodiment;
[0028] FIG. 18 illustrates further aspects of process flow for
management of Purchaser profile incentives and/or penalties in one
embodiment;
[0029] FIG. 19 illustrates aspects of process flow for management
of retailer price group incentives and/or penalties in one
embodiment;
[0030] FIG. 20 illustrates further aspects of process flow for
management of retailer price group incentives and/or penalties in
one embodiment;
[0031] FIG. 21 illustrates further aspects of process flow for
management of retailer price group incentives and/or penalties in
one embodiment; and
[0032] FIG. 22 is of a block diagram illustrating embodiments of
the present invention of a Fuel Offering Generator system
controller.
[0033] The leading number of each reference number within the
drawings indicates the figure in which that reference number is
introduced and/or detailed. As such, a detailed discussion of
reference number 101 would be found and/or introduced in FIG. 1.
Reference number 201 is introduced in FIG. 2, etc.
DETAILED DESCRIPTION
Fuel Offering Generator
[0034] FIG. 1A illustrates a system 100 for generating fuel
offerings according to an embodiment of the Fuel Offering
Generator. System 100 comprises a market parameter generator 408
coupled for real-time monitoring of data related to a fuel market
410. Real-time market data refers to data reflecting current market
conditions as trading in the market takes place. Examples of
real-time market data provided to real-time market parameter
generator 108 include wholesale over-the-counter fuel options
market data, wholesale fuel options over-the-counter forward market
and futures market data, and spot prices for retail fuel as well as
spot prices for wholesale fuel. In an alternative embodiment, a
market parameter generator may be configured to periodically and/or
intermittently query current values for market parameters.
[0035] A market history analyzer 115 is coupled to receive and/or
record observable real-time market data and/or historical records
of market data related to market 110. The market history analyzer
may record and store observed market data and/or historical market
data accumulated historically and received by the market history
analyzer. In that manner, market history analyzer 115 develops data
related to the historical performance of the market. In one
embodiment of the Fuel Offering Generator, market data includes
retail gas spot prices and wholesale gas spot prices.
[0036] A product matrix generator 125 is coupled to the market
parameter generator 108 and to the market history analyzer 115.
Product matrix generator 125 is configured to the behavior of
market 110. Product matrix generator 125 operates on the parameters
it receives from real-time market parameter generator 108 and
market history analyzer 115 in accordance with a stochastic model
of the dynamics of the market 110. In one implementation, the
product matrix generator 125 may consider some of the market
variables and/or other input parameters in FIG. 4A and discussed
below. Product matrix generator 125 may solve a stochastic
differential equation to provide a commodity volatility model based
on the input parameters.
[0037] In one embodiment, the matrix generator 125 is configured to
solve stochastic differential equations for market models using
parameters provided by real-time market parameter generator 108 and
market history analyzer 115. Among other parameters provided by
real-time market parameter generator 108 and market history
analyzer 115, parameters reflecting retail fuel sales activity may
be collected and provided to real-time market parameter generator
108 and market history analyzer 115 in embodiments of the Fuel
Offering Generator.
[0038] For example, in one embodiment of the Fuel Offering
Generator, the matrix generator 125 is configured to process spot
price spread information provided by real-time market parameter
generator 108. The spot price spread information is related to a
difference between a retail fuel spot price and a wholesale fuel
spot price. Matrix generator 125 processes the spot price spread
information in accordance with a stochastic model. In embodiments
of the Fuel Offering Generator, the matrix generator 125 is further
configured to process retail fuel forward curve parameters in
accordance with a stochastic model. The retail forward curve
parameters may be provided by the market history analyzer 115. In
another embodiment of the Fuel Offering Generator, the matrix
generator 125 may further solve alternative market models that are
adapted and/or deemed suitable for use in embodiments of the Fuel
Offering Generator.
[0039] In one embodiment of the Fuel Offering Generator, the matrix
generator 125 receives market parameters from real-time market
parameter generator 108 and from market history analyzer 115.
Product matrix generator 125 processes and analyzes the information
to provide a solution for the adapted stochastic differential
equation. Product matrix generator 125 may be coupled to price
information generator 130 and configured to provide the solution
thereto. Based upon the solution it receives from product matrix
generator 125, price information generator 130 may provide data
representing a product price at an output in one implementation. In
an embodiment of the Fuel Offering Generator, the price information
generator 130 may also provide data representing price sensitivity
at an output. In one implementation, the price sensitivity may
indicate price sensitivity not only with respect to wholesale fuel
markets but also with respect to retail fuel prices, and/or with
respect to other input variables received from real-time market
parameter generator 408, market history analyzer 405, and/or
product modeler 420.
[0040] In one embodiment, the system 100 further comprises a
product modeler 120. Product modeler 120 is coupled to at least one
computer system 102. In some embodiments of the Fuel Offering
Generator, the product modeler 120 is coupled to two computer
systems 102 and 104. In embodiments of the Fuel Offering Generator
at least one of computer systems 102 and 104 comprises a fuel
offering Purchaser computer. In some embodiments the fuel offering
Purchaser computer may be coupled to product modeler 120 via a
communications network, such as the Internet. A fuel purchaser may
enter information related to a fuel product, such as a fuel
offering, using the fuel offering Purchaser computer. The fuel
offering Purchaser computer transmits the information to product
modeler 120. In one implementation, the product modeler 120 may use
the information from the fuel offering Purchaser to determine
features of a financial product to be modeled by product modeler
120.
[0041] In one embodiment, the Fuel Offering Generator 100 comprises
at least one Distributor computer system 104. Distributor computer
system 104 is coupled to product modeler 120 and may enable a
Distributor to define characteristics of a financial product
comprising fuel offerings to be offered to a consumer. In that
embodiment a Distributor inputs data to Distributor computer 104.
Distributor computer 104 provides the data to product modeler 120.
Product modeler 120 models the financial product in accordance with
the characteristics provided by Distributor computer system
104.
[0042] Product modeler 120 is coupled to product matrix generator
125. Based upon inputs from at least one of a fuel purchaser
computer 102 and a Distributor computer 104 product modeler 120
generates data representing features of a financial product. System
100 determines the price of the financial product based upon
product data provided by product modeler 120, real-time market
parameters provided by real-time market parameter generator and on
historical market data provided by market history analyzer 115.
[0043] In one embodiment of the Fuel Offering Generator, the matrix
generator 125 is coupled to a consumer behavior modeler 170.
Consumer behavior modeler 170 receives data representing Purchaser
(e.g., consumer) behavior with respect to fuel offering execution
and/or purchase, ownership, exercising, and/or the like. Based upon
the behavior data consumer behavior modeler 170 provides Purchaser
and/or consumer behavior parameters to matrix generator 125. In
that embodiment, matrix generator 125 considers the Purchaser
and/or consumer behavior in calculating price for a financial
product.
[0044] FIG. 1B describes one embodiment of a Fuel Offering
Generator 101. In one implementation of the Fuel Offering
Generator, a fuel offering comprises a product related to future
purchases of fuel in a retail fuel market. Both the retail and the
wholesale fuel markets are observed 103. Observable wholesale fuel
market parameters include wholesale fuel over-the-counter (OTC)
options information, wholesale gas over-the-counter (OTC) forward
market data in a wholesale fuel market. Fuel market data including
retail fuel spot price information is obtained 103.
[0045] Market parameters related to current market conditions are
generated based on the observed fuel market condition 111. At least
one generated market parameter related to current market conditions
is wholesale-retail spot price spread in one implementation. Other
generated market parameters may include a wholesale implied
volatility and a wholesale forward curve.
[0046] In one embodiment of the invention parameters related to
current market conditions are sampled and stored to provide
historical data describing past market behavior 113. One sampled
and stored parameter used in one implementation to provide
historical data is retail fuel market spot price. Thus historical
data related to retail fuel spot price is acquired.
[0047] Historical data, such as data related to retail fuel spot
price, may be analyzed 119. The analysis may, in one
implementation, consider retail fuel market information. The data
is used to estimate parameters of models for fuel market behavior
121. Examples of generated fuel market behavior parameters may
include retail implied volatility, wholesale mean reversion, retail
forward curve and retail mean reversion. The indicators of fuel
market behavior and the parameters related to current market
conditions are analyzed 123. In one embodiment of the Fuel Offering
Generator, the analyzing step is carried out by stochastic
modeling. Price information for the fuel offering is generated 143.
In one embodiment of the Fuel Offering Generator, price sensitivity
information related to the fuel offering is generated 144.
[0048] In further embodiments of the invention Purchaser and/or
consumer behavior may be observed 141. Data related to Purchaser
and/or consumer behavior is obtained based on the observations. In
one embodiment of the invention Purchaser and/or consumer behavior
data is analyzed 142 as considered in an analyzing step 123 as a
factor in generating price information 143.
[0049] Fuel Offering Generator Information Flow
[0050] With reference now to FIG. 2, there are shown and described
a top level information flow of a process for creating and managing
the execution of fuel offerings to one or more Purchasers,
according to one embodiment.
[0051] FIG. 2 is seen to include three principal parties including
a Provider 202 of fuel offerings, a Distributor 204 of fuel
offerings and at least one Purchaser 206 of fuel offerings. It will
be understood that in certain embodiments, the Provider 202 and
Distributor 204 may be considered as a single entity from the
perspective of the Purchaser 206. It will also be understood that
while FIG. 2 illustrates a single Purchaser 206, for ease of
explanation, the single Purchaser 206 is representative of a
marketplace of potential Purchasers 206 of the fuel offering.
[0052] At block B1, a request is made by the Distributor 204,
directed to the Provider 202, to structure and/or generate one or
more fuel offerings. In some embodiments, the request may include
some number of product factors and/or parameters, for example, (i)
the type of fuel to offered, (ii) the quantity of fuel to be
offered, (iii) usage per period limitations, (iv) tenor, (v)
geography, and/or (vi) strike price. Of course, in other
embodiments, other combinations and/or additional factors and/or
parameters may alternatively or additionally be provided.
[0053] At block C1, the Provider 206 structures a selection of fuel
offerings, responsive to the Distributor 204 request. The selection
of fuel offerings may, in one embodiment, include associated
premiums based on the parameters provided by the Distributor 204.
In certain embodiments, the selection of fuel offerings may
constitute a single fuel offering or a range of fuel offerings, as
shown in Table 1 below. Depending on the embodiment, a fuel
offering may be characterized its type (e.g., fuel type, such as
regular unleaded gasoline, premium unleaded gasoline, diesel,
bio-diesel, ethanol, hydrogen and/or the like), strike price, tenor
or term (e.g., 3 months, 6 months, 1 year, etc.), calculated
premium and/or the like. Table I, illustrates, by way of
non-limiting example, an exemplary range of fuel offerings which
may be constructed by the Provider 206, responsive to a Distributor
204 request.
TABLE-US-00001 TABLE 1 Type Quantity Strike Price Tenor Premium
Diesel 30k gallons $2.50 3 months $0.40 Diesel 30k gallons $2.75 3
months $0.30 Diesel 30k gallons $3.00 3 months $0.20 Diesel 30k
gallons $3.25 3 months $0.10
[0054] With continued reference to FIG. 2, at block C2, the range
of fuel offerings, such as those shown in Table 1, are presented to
the Distributor 204 for his or her approval and/or selection.
[0055] At block B2, the Distributor 204, may select one or more
fuel offerings and make said offering(s) available to Purchasers
202. In one embodiment, it is contemplated that the fuel
offering(s) may be made widely available over to a large population
of potential Purchasers over an electronic network, such as the
Internet. In the case where the Distributor 204 does not select one
or more fuel offerings, the process may return to block C1 and the
fuel offerings may be re-structured in an appropriate manner.
[0056] At block B3, the Distributor 204 may pay the Provider 206 an
upfront strike price plus premium and/or service markup, or
otherwise paying only a premium and/or service markup.
[0057] At block C3, the Provider 206 may protect its fuel offering
investment by employing hedging strategies, such as, for example,
utilizing forward contracts, futures, wholesale fuel options and/or
the like in appropriate combination(s). In some embodiments, the
Provider 206 may alternatively elect not to employ any hedging
strategies.
[0058] At block A1, a Purchaser 202 may access the Distributor 204
(e.g., via a web-site) to purchase one or more fuel offerings being
marketed by the Distributor 204. For example, with reference again
to Table I, a Purchaser 202 may elect to purchase the first listed
fuel offering (see row 1 of Table I),
TABLE-US-00002 Type Quantity Strike Price Tenor Premium Diesel 30k
gallons $2.50 3 months $0.40
[0059] At block A2, the Purchaser 202, in possession of the fuel
offering shown above, may exercise the fuel offering to purchase
fuel (in this case, diesel fuel) up to the stipulated quantity,
during the indicated tenor, and at the indicated strike price.
Additional details of the transaction may be dependent upon the
model being utilized by the Distributor 204 (e.g., based on a
national average price or a pump price). For example, in some
embodiments, when a Purchaser 202 purchases fuel, the Distributor
204 may pay the difference between the strike price ($2.50), and
either the pump price at the point of purchase or a national
average price on the date of purchase. In one embodiment, the fuel
offering is priced to include the strike price plus the premium, so
that upon exercising the fuel offering (i.e., buying gas), the
Purchaser 202 pays out no money, and the fuel retailer is paid by
the Distributor 204. As a further example, in accordance with one
implementation of the pump price model, if the pump price is $3.00
and the fuel offering strike price is $2.50, the Purchaser 202
effectively pays $0.10 less than the pump price, considering a
premium payment of $0.40, which is advantageous to the Purchaser
202.
[0060] At block B4, in response to the Purchaser 202 purchasing
fuel at block A2 within the construct of the fuel offering, the
Distributor 204 pays the fuel retailer (e.g., gas station) at the
point of purchase the cost of the gasoline based on the pump price
on the date of purchase. In an alternative embodiment wherein the
Purchaser has only paid a premium and not a strike price to the
Distributor up front, the Distributor may only pay based on the
difference between the pump price and the fuel offering strike
price to the gas station.
[0061] At block B5, the Distributor collects feedback data on each
fuel offering exercise and/or purchase, such as the one described
at block A2 and said data is provided to the Provider 206 to enable
refinement of future fuel offerings. The collected data may include
the prices at which Purchasers are exercising fuel offerings (e.g.,
purchasing fuel) relative to the corresponding fuel offerings
strike prices, the quantities involved and/or other indicia.
[0062] At block C4, the Provider pays the Distributor the cost of
the gasoline for which the Distributor has paid the gas station. In
an alternative embodiment, the Provider may only pay the difference
between the cost of the gasoline and the cost calculated based on
the fuel offering strike price.
[0063] Financial Structure Model
[0064] FIGS. 3A-B show aspects of financial structure model
operation in particular embodiments of Fuel Offering Generator
operation. In FIG. 3A, a combined logic and data flow diagram is
shown illustrating one implementation of the financial structure
model. A pricing module 301 receives as inputs fuel market
information 303, historical analysis 305, and offering parameters
310. Details surrounding the nature of these inputs, including
examples thereof, and of pricing module operation, will be
discussed in greater detail in the context of offering pricing
below. The pricing module yields as output at least one offering
price and/or price matrix 320, that may be comprised of one or more
offerings with associated strike price, premium, tenor, terms,
service markup, restrictions, constraints, discounts, and/or the
like. The pricing module may also yield as output at least one set
of sensitivity data characterizing the sensitivity of price matrix
elements to input parameters. For example, the sensitivity data may
delineate, among other things, the sensitivity of the premium of a
given offering or set of offerings to fuel market factors, such as
retail gasoline spot prices. Sensitivity may be represented, in one
implementation, by the first derivative of the output variable
(e.g., offering price, premium, strike price, etc.) with respect to
an input variable (e.g., market factors, historical factors,
offering parameters).
[0065] The Provider determines at 330 whether the price matrix 320
is satisfactory based on a set of price matrix satisfaction
criteria, which may include a consideration of the reasonableness
of premium value and strike price combinations. Price matrix
satisfaction criteria may also be based in part on accumulated
Purchaser (e.g., consumer) marketing research data 333, such as
data describing which offerings, premium and strike price
combinations, etc. are most attractive to Purchasers, which types
of offerings are least likely to be exercised, and/or the like. If
the price matrix 320 output by the pricing module 301 is not
satisfactory based on the satisfaction criteria, then the offering
parameters 310 may be adjusted in order to improve the alignment of
the pricing matrix with the satisfaction criteria in the next
iteration. If, on the other hand, the pricing matrix does meet a
minimum standard of satisfaction, then the corresponding offerings
are made available in a Purchaser market, such as a consumer market
335. Purchasers may execute purchases of offerings 340 and,
subsequently, exercise the offerings 345 to receive pay-outs
consistent with offering terms.
[0066] In one implementation, the Provider itself may price
offerings, make them available to a Purchaser market, execute
Purchaser offering purchases, and honor Purchaser offering
exercises. In another implementation, the Provider may price
offerings and make them available to an intermediary Distributor
entity, who may provide them to a Purchaser market and interface
with Purchasers for offer purchases and exercises. Additional
details surrounding Provider-Distributor-Purchaser interactions in
the context of offering exercise delays are discussed below.
[0067] Data related to offering executions and exercises (e.g.,
offering popularity, exercise rates, and/or the like) may be
monitored by the Provider and incorporated into a Purchaser
marketing research data set that may be sampled in subsequent
selection of offering parameters. For example, the Provider may
observe that all 3-month tenor, regular octane gasoline offerings
having a strike price of $2.90/gallon and up sell considerably more
poorly than other offerings regardless of the premium charged.
Subsequent offering generations may, consequently, exclude these
offering parameters and/or terms altogether. Offering exercise
information may also be fed back into the pricing module through
historical analysis variables that may alter the strike price
and/or premium of particular offering rather than changing the
presence or absence of offering parameters altogether. For example,
the Provider may observe that the profits derived from 12-month
tenor, regular octane gasoline offerings having a strike price of
$2.00/gallon are greater than expected because Purchasers who
exercise these particular offerings tend to behave sub-optimally.
Consequently, the system may incorporate that knowledge to charge a
lower premium for these particular offerings that may attract more
Purchasers to these types of offerings and potentially increase the
profits derived from them even more.
[0068] Data related to execution 340 and exercise 345 of offerings
may also be incorporated, along with sensitivity data 325, into
Provider hedging strategies and/or practices 350. In an effort to
offset, mitigate, and/or eliminate some amount of risk associated
with the sale of offerings, the Provider may elect to select,
purchase, and/or manage a portfolio of hedging instruments. A
Provider devised hedging portfolio may be comprised of a variety of
different types of holdings in various implementations that may
include but are not limited to equities, debts, derivatives,
synthetics, notes, stocks, preferred shares, bonds, debentures,
options, futures, swaps, rights, warrants, commodities, currencies,
long and/or short positions, ETFs, and/or other assets or
investment interests. In one implementation, a Provider devised
hedging portfolio may be comprised of forward contracts and/or
futures of exchange or over-the-counter (OTC) traded wholesale fuel
options, gasoline options, and/or the like. Sensitivity data 325
provides information describing the degree to which a particular
input variable (e.g., a market parameter) affects the strike price
and/or premium of an offering. Counteracting the risk associated
with an offering may, therefore, be accomplished by seeking
instruments whose sensitivity to input variables is similar in
magnitude but opposite in direction to offering sensitivities.
Observed offering execution and exercise practices and/or trends of
Purchasers may further affect Provider hedging strategies and/or
practices. For example, an observation of sub-optimal exercise of
offerings by Purchasers may indicate to a Provider that a smaller
purchase of hedging instruments will suffice to offset the risk
associated with the offerings. In the extreme case, wherein the
offerings are never exercised under any circumstances, the Provider
would have no need for hedging instruments at all. Further details
surrounding hedging strategies and/or practices in the context of
Purchaser aggregation and scale are discussed below.
[0069] FIG. 3B shows logic flow in an implementation of the
financial structure model in one embodiment of Fuel Offering
Generator operation. A Provider collects financial structure model
inputs 360, such as market factors, average and/or specific fuel
prices, price and/or market factor geographic distributions,
historical price data and/or market factors, offering parameters
(e.g., strike price, premium, tenor, restrictions, discounts,
incentives, and/or the like), Purchaser and/or consumer behavior
considerations, hedging strategy considerations, and/or the like
and stores them in a variables table at 365. Based at least in part
on financial structure model inputs, the Provider may determine a
price matrix 370. Model inputs, outputs, and price matrix
determination logic will be discussed in greater detail below. In
one implementation, a price matrix may be comprised of a collection
of offerings with varying terms, strike prices, premiums,
incentives, restrictions, and/or the like. In one implementation,
the Provider and/or the Distributor may further append a service
markup to the strike price and/or premium to yield an offering
price and/or collection of offering prices within a consumer price
matrix.
[0070] The Provider may send 375 a price matrix, consumer price
matrix, and/or some portion thereof 376 to Purchasers for
consideration and, for any Purchasers who request to purchase
offerings, the Provider may subsequently receive notices of
offering purchases 380 and execute offerings. These executed
offerings may be sorted 383 and subsequently aggregated 385 into a
plurality of similarity classes based on some desired criteria,
such as Purchaser location, selected offering parameters and/or
terms, Purchaser characteristics and/or demographics, Purchaser
behavior and/or history, and/or the like. A sensitivity and/or risk
analysis 388 may be performed on the similarity classes in order to
determine sensitivity of offering prices to various input
parameters (such as described above) and risk characteristics that
may be considered in a hedging strategy for subsequent hedging of
Provider risks and/or obligations. In addition, the Provider may
optionally perform correlation analysis 390 on similarity classes,
similarity class sensitivities, and/or similarity class risks in
order to determine which, if any, similarity classes exhibit
similar sensitivity and/or risk characteristics and/or
correlations. Similarity classes with correlated sensitivity and/or
risk behaviors may then be aggregated to simplify and/or expedite
Provider hedging strategies.
[0071] The Provider may subsequently implement hedging strategies
and/or accumulate a hedging portfolio 395. In one implementation,
Provider hedging strategies may be based in part on execution of
Purchaser offering purchases, Purchaser offering exercises, and/or
other Purchaser behaviors (e.g., Purchaser irrationality, and/or
the like) at different scales of Purchaser granularity. In one
implementation, Provider hedging strategies may be based in part on
individual Purchaser offering purchases and/or exercises. For
example, a large institutional Purchaser (e.g., a trucking company)
may purchase a large enough offering and/or quantity of smaller
offerings to motivate a Provider to develop a hedge strategy based
solely on the single Purchaser purchase and/or behavior. In another
implementation, Provider hedging strategies may be based in part on
aggregated Purchaser offering purchases and/or exercises. For
example, in this implementation, a Purchaser's offering purchase of
a small quantity of gasoline may not affect the Provider's hedging
strategy and/or portfolio. Instead, the Provider may enter a record
of the offering purchase into a purchase repository for temporary
storage and/or aggregation with other fuel offerings. The Provider
may then periodically analyze purchase repository contents in order
to determine when there is an aggregation of Purchaser offering
purchases that is sufficiently large and/or significant to warrant
consideration in the Provider hedging strategy and/or modification
of the Provider devised hedging portfolio. Aggregation of Purchaser
offering purchases may be made in a variety of different ways
within various implementations. In one implementation, Purchaser
offering purchases may be aggregated based on time of purchase. In
another implementation, Purchaser offering purchases may be
aggregated based on Purchaser characteristics (e.g., demographics,
location, Purchaser behavior profile, and/or the like). In another
implementation, Purchaser offering purchases may be aggregated
based on the nature of Purchasers (e.g., individual Purchasers,
small business Purchasers, large business Purchasers,
government/institutional Purchasers, and/or the like). In another
implementation, Purchaser offering purchases may be aggregated
based on the risk characteristics associated with Purchasers and/or
Purchaser characteristics. In addition to storing execution of
Purchaser offering purchases for aggregation, a Provider may
additionally or alternatively store exercise of Purchaser offerings
for aggregation and subsequent consideration in hedging
strategies.
[0072] The Provider may monitor and/or track Purchaser offerings to
determine if offerings are exercised 3100. If a Purchaser has
exercised a purchased offering, then the Provider may query the
circumstances of the Purchase exercise and pay-out the Provider's
obligation under the terms of the offering in light of those
circumstances 3105. Circumstances may include location, time, fuel
price (e.g., the average price of gasoline in a region wherein the
offering was exercised, a regional or national average fuel price,
and/or the like), status of Purchaser owned offering and/or
offering restrictions at the time of purchase (e.g., whether the
Purchaser has exceeded a monthly cap, whether the Purchaser is in a
restricted region, and/or the like), and/or the like. In one
implementation, the Provider may determine the Purchaser owned
offering's strike price and a reference fuel price at the time of
offering exercise and, if the strike price is less than the
reference fuel price, determine the difference between those
prices, multiply that difference by the volume of gas on which the
offering is being exercised, and implement any additional
discounts, penalties, or restrictions in order to determine the
payout amount. In one implementation, the reference fuel price is a
regional average fuel price. In another implementation, the
reference fuel price is a national average fuel price. The Provider
may also collect and/or analyze Purchaser behavior characteristics
3110. The Provider may recollect and/or update financial structure
model inputs at 3115. The Provider may also store collected and/or
analyzed Purchaser behavior characteristics in a Purchaser table
3120.
[0073] In alternative implementations, a Provider may interface
with Purchasers through an intermediary Distributor entity. In such
an implementation, the Provider at 375 and/or 376 may send a
pricing matrix or portion thereof to the Distributor, who may then
optionally select elements of the price matrix and/or add a service
markup to create a consumer price matrix for subsequent
presentation to Purchasers. Purchasers who wish to purchase
offerings may request offerings from the Distributor and offer
payment based on the corresponding entries in the consumer price
matrix. The Distributor, in turn, may relay purchase requests to
the Provider 380 and/or purchase offerings from the Provider, and
relay those offerings back to the Purchasers. When a Purchaser
exercises an offering 3100, the Distributor may pay-out to the
Purchaser to regain ownership of the offering and immediately
submit an exercise notice to the Provider to receive pay-out
therefrom. Alternatively, a Distributor may pay-out obligations to
Purchasers when offerings are exercised by those Purchasers, retake
ownership of those offerings, and yet retain ownership until some
later time at which an exercise notice is submitted to the
Provider. Such a delay may allow the Distributor to take advantage
of subsequent market changes (e.g., increases in fuel prices) that
are foregone by suboptimal exercise of offerings by Purchasers.
Such delay between Purchaser and Distributor offering exercise
and/or suboptimal exercise by either Purchaser or Distributor may
be considered by the Provider in pricing matrix generation and/or
hedging strategies.
[0074] Financial Structure Pricing
[0075] FIGS. 4A-B show operation of financial structure pricing and
price-pump model operation in respective embodiments of Fuel
Offering Generator operation. FIG. 4A shows processing flow for
pricing of offerings in one embodiment of Fuel Offering Generator
operation. A collection of module inputs 401 may comprise current
fuel market information 403, historical fuel market information
and/or analysis 405, and observable 410 and non-observable 415
parameters derived therefrom. Some examples of possible current
fuel market information 403 may include current wholesale gasoline
OTC options market data, current wholesale gasoline OTC forward
market and futures market data, current retail gasoline spot
prices, and/or the like. Some examples of possible historical
market information and/or analysis 405 may include historical
wholesale gasoline OTC options market data, historical wholesale
gasoline OTC forward market and futures market data, historical
retail gasoline spot prices, historical wholesale gasoline spot
prices, correlations between historical retail and wholesale
gasoline prices, and/or the like. Some examples of observable
parameters 410 that may be derived from current fuel market
information may include wholesale gasoline implied volatilities,
wholesale gasoline forward curves, spread of retail over wholesale
spot prices, and/or the like. Some examples of non-observable
parameters 415 that may be derived from historical fuel market
information and/or analysis may include retail gasoline implied
volatilities, wholesale gasoline mean reversion parameters, retail
gasoline mean reversion parameters, retail gasoline forward curves,
and/or the like.
[0076] In one implementation, the pricing module may also admit as
inputs a collection of Purchaser historical data. Purchaser
historical data may be comprised of records of Purchaser execution
and/or exercise of offerings. In particular, the system may monitor
Purchaser execution and/or exercise of offerings with specific
attention to particular Purchaser behavior flags. In one
implementation, a Purchaser behavior flag may comprise consistent
solicitation of and/or exercising of offerings at more expensive
than average fuel retailers. In another implementation, a Purchaser
behavior flag may comprise consistent solicitation of and/or
exercising of offering at cheaper than average fuel retailers. In
another implementation, a Purchaser behavior flag may comprise too
optimal a pattern of offering exercising. In another
implementation, a Purchaser behavior flag may comprise too
suboptimal a pattern of offering exercising. In another
implementation, a Purchaser behavior flag may comprise strong time
dependence of Purchaser exercising of offerings. If the number of
observed Purchaser behavior flags exceeds a threshold minimum
value, a Purchaser behavior history variable admitted as input to
the pricing module may be adjusted so as to cause the pricing
module to yield an adjusted pricing matrix intended to correct
and/or direct future Purchaser behavior.
[0077] In addition to the aforementioned factors and variables, the
pricing module may admit a collection of offering parameters that
may specify offering terms presented to a Purchaser. Some examples
of possible offering parameters may include strike price, premium,
tenor, constraints, restrictions, incentives, discounts, fuel type,
geographic location, and/or the like. In one implementation, a
pricing module operator (e.g., Provider) may set values for some
offering parameters and receive others as outputs from the pricing
generator. For example, a particular desired strike price, tenor,
set of restrictions, fuel type, and location may be input to the
pricing module, and a premium received as an output from the
module. Alternatively, a particular desired premium, tenor, set of
restrictions, fuel type, and location may be input to the pricing
module, and a strike price received as an output from the module.
The particular mode of operation, including selection of offering
parameter inputs and outputs, may be varied within different
implementations depending on the particular goals and/or
requirements of particular applications of the system.
[0078] Values for a selected group of module inputs 401 may be fed
into the pricing module 301 for processing. Inputs are incorporated
into an offering pricing model 425 such as, in one implementation,
a commodity volatility model incorporated into a stochastic
differential equation describing commodity value. An example of
such a model is provided in U.S. Pat. No. 7,065,475 entitled,
"Modeling Option Price Dynamics," filed on Oct. 31, 2000, which is
incorporated in its entirety herein by reference. U.S. Pat. No.
7,980,960 entitled, "System and method for providing a fuel
purchase incentive," filed on Mar. 28, 2001, and U.S. application
Ser. No. 09/853,196 entitled "System and method for providing a
fuel purchase incentive with the sale of a vehicle," filed May 11,
2001, are each incorporated in their entirety by reference. Solving
a stochastic differential equation to extract output offering
parameters may be accomplished by a variety of techniques in
different embodiments, such as but not limited to grid pricing,
Monte Carlo simulation, analytic formulas, and/or the like.
[0079] In one implementation, the XML for module inputs may take
the following form:
TABLE-US-00003 <module_inputs> <observables>
<WG_implied_vol> Jan08-Mar08, 30%, Apr08-Dec08, 25%
</WG_implied_vol> <WG_forward_curve> Jan08-Jun08,
$2/gal, Jul08-Dec08, $2.2/gal </WG_forward_curve>
<Retail_wholesale_spot_spread> $0.8/gal
</Retail_wholesale_spot_spread> </observables>
<non-observables> <RG_implied_vol> 20%
</RG_implied_vol> <WG_mean_reversion> 0.5
</WG_mean_reversion> <RG_mean_reversion> 0.5
</RG_mean_reversion> <RG_forward_curve> $2.9/gal
</RG_forward_curve> </non-observables>
<offering_parameters> <premium> $0.15/gallon
</premium> <tenor> 3 months </tenor>
<restrictions> <total_volume> 60 gallons
</total_volume> <cap> 20 gallons/month </cap>
</restrictions> <fuel_type> "regular" gasoline (87
octane) </fuel type> <location> New York Metro
</location> <index> New York Metro Average published by
DOE</index> </offering_parameters>
</module_inputs>
[0080] The pricing module 301 subsequently outputs sensitivity data
435 and price data 440. Price data 440 may, as discussed above, be
comprised of different offering parameters depending on the
requirements and consequent module inputs within a particular
implementation. Thus, the price data 440 output may include, but is
not limited to, strike price, premium, tenor, restrictions, usage
constraints, incentives, fuel type constraints, geographic
constraints, and/or the like. Sensitivity data 435, as discussed
above, describes the extent to which price data 440 may vary as
module inputs 401 are varied. In one implementation, sensitivity
data may be comprised of the first derivative of a price data
variable with respect to one or more module input variables.
[0081] In one implementation, the XML for module outputs may take
the following form:
TABLE-US-00004 <module_outputs> <sensitivity_data>
<WG_implied_vol_sensitivity> Jan08-Jun08, $1000 per percent
vol move, Jul08-Dec08, $500 per percent vol move
</WG_implied_vol_sensitivity >
<WG_forward_curve_sensitivity > Jan08 - Jun08, $500 per
$1/gal move, Jul08-Dec08, $750 per $1/gal move
</WG_forward_curve_sensitivity >
<Retail_wholesale_spot_spread_sensitivity > $3000 per $1/gal
move </Retail_wholesale_spot_spread_sensitivity >
<RG_implied_vol_sensitivity >$1500 per percent vol move
</RG_implied_vol_sensitivity >
<WG_mean_reversion_sensitivity > $200 per 0.1 move in
mean-reversion </WG_mean_reversion_sensitivity >
<RG_mean_reversion_sensitivity >$150 per 0.1 move in
mean-reversion </RG_mean_reversion_sensitivity >
<RG_forward_curve_sensitivity > Jan08 - Jun08, $700 per
$1/gal move, Jul08-Dec08, $600 per $1/gal move
</RG_forward_curve_sensitivity > </sensitivity_data>
<price_data> <strike_price> $2.89/gallon
</strike_price> </price_data>
</module_outputs>
[0082] The pricing module output described by the above XML
includes a single strike price within the price_data/strike_price
field. In an alternative implementation, a Provider may determine
price_data for a variety of module input values in order to yield
an array of price_data with different corresponding offering
parameters. Such an array of price data with corresponding offering
parameters may be incorporated into a pricing matrix. In one
implementation, the XML for a three-offering pricing matrix may
take the following form:
TABLE-US-00005 <pricing_matrix> <offering1>
<strike_price> $2.89 </strike_price> <premium>
$0.15/gallon </premium> <tenor> 3 months </tenor>
<restrictions> <total_volume> 60 gallons
</total_volume> <cap> 20 gallons/month </cap>
</restrictions> <fuel_type> "regular" gasoline (87
octane) </fuel type> <location> New York Metro
</location> <index> New York Metro Average published by
DOE</index> </offering1> <offering2>
<strike_price> $3.02 </strike_price> <premium>
$0.10/gallon </premium> <tenor> 3 months </tenor>
<restrictions> <total_volume> 60 gallons
</total_volume> <cap> 20 gallons/month </cap>
</restrictions> <fuel_type> "regular" gasoline (87
octane) </fuel type> <location> New York Metro
</location> </offering2> <index> New York Metro
Average published by DOE</index> </offering2>
<offering3> <strike_price> $2.94 </strike_price>
<premium> $0.15/gallon </premium> <tenor> 6
months </tenor> <restrictions> <total_volume> 60
gallons </total_volume> <cap> 20 gallons/month
</cap> </restrictions> <fuel_type> "regular"
gasoline (87 octane) </fuel type> <location> New York
Metro </location> <index> New York Metro Average
published by DOE</index> </offering3>
</pricing_matrix>
[0083] Pump-Price Model and Pricing
[0084] FIG. 4B shows logic flow for determination of offering
pricing within a pump-price model context in one embodiment of Fuel
Offering Generator operation. Although geography is not necessarily
central to the price structure itself, it is relevant, and greater
detail may be found in FIGS. 10-11. In this embodiment, the strike
price associated with an offering is compared with the price
charged by the particular fuel retailer at which an offering is
exercised in assessing the extent of pay-out obliged to an
exercising Purchaser. For example, in a non-prepay embodiment
wherein a Purchaser has only paid a premium upfront, if a Purchaser
exercises an offering based on a strike price of $2.20 for a gallon
of gasoline at a retailer that charges $2.40/gallon, the Purchaser
may be refunded $0.20/gallon by the Provider, while the same
offering exercised at a retailer charging $2.55 would yield
$0.35/gallon if exercised. In an alternative, prepay embodiment
wherein a Purchaser has paid both strike price and premium up
front, the Provider would directly pay the gas station the cost of
the fuel based on either the $2.40 or $2.55 pump prices. Due in
part to the pump-specific sensitivity of this model, a number of
additional restrictions and/or structural considerations, such as
management of geographic price variations and undesirable Purchaser
behavior, may be implemented to facilitate desired Generator
operation and will be described in greater detail below. These
factors may, in one implementation, be incorporated into
determination of up-front pricing (e.g., premiums) for fuel
offerings. They may also, or in an alternative implementation, be
considered as part of fuel offering redemption structure as
discussed below and in FIGS. 10-12 and 14-21.
[0085] Owing to the dependence of pump-price model payout on the
price at the pump itself, considerations of variability between
pump prices in different geographic regions must be incorporated.
The Generator develops a Single-Price Zone (SPZ) map at 445,
wherein an SPZ is defined as a region and/or collection of
retailers defined by a single, uniform pricing assignment. For
example, a Purchaser may exercise an offering with the same strike
price at a given premium at all retailers belonging to the same
SPZ. SPZ map determination is described in greater detail below in
FIGS. 10-11. The SPZ map defines SPZ boundaries and may guide the
accumulation of historical pump price distribution data for a given
SPZ 450. Historical Purchaser bias data may also be accumulated for
a given SPZ 455. Purchase bias data may, in one implementation,
describe the extent to which Purchasers tend to exercise offerings
at retailers that are biased to one side or the other of the
average of retailers within the SPZ. For example, a large Purchaser
bias may indicate that Purchasers tend to exercise their offerings
disproportionately often at expensive fuel retailers. The SPZ map
and accumulated data may be employed to determine and/or collect
further factors relevant to pricing within the pump-price model
460. These factors may include the size of Purchaser bias with an
SPZ, volatility of that bias, convexity of that bias, and the
existence of a no-arbitrage condition. Convexity of bias in this
context may, in one implementation, be construed to describe the
extent to which there is a difference in the average pay-out amount
between those offerings based on the difference between strike
price and an average retailer pump price and those offerings based
on the difference between a strike price and a pump price at which
the offering is exercised. Volatility of bias reflects the extent
to which the distribution of prices within an SPZ may vary over
time and the effect of such variation on deviations of Purchaser
behavior from average expectations. The no-arbitrage condition in
this context may, in one implementation, be construed to describe
the avoidance of a situation where a Purchaser can buy an offering
and immediately exercise to make riskless profit. These and other
factors discussed may affect the cost of offerings and,
consequently, be considered in either the up-front pricing (e.g.,
premium) of offerings, or in the devising of incentives,
restrictions, discounts, and penalties. A financial structure
pricing determination is performed at 465, similar to those
described above in the context of the financial structure pricing
model above, and the output premium and/or strike price is adjusted
by an amount determined by the factors in 460 to yield a pump-price
pricing 470.
[0086] An example of a premium adjustment made as part of the
price-pump model may be to determine the average pump price within
an SPZ, compute the total payout for an offering exercised at all
retailers charging higher than that average, divide by the total
number of retailers, and add this quantity (the convexity of bias,
in one implementation) directly to the premium. Another example of
a premium adjustment made as part of the price-pump model may be to
determine the standard deviation of average retailer pump prices
within an SPZ over some period of time and add that deviation, or
some fraction thereof, to the premium. Further premium and/or
strike price adjustments may be implemented within different
embodiments of the Fuel Offering Generator.
[0087] Based on the SPZ map developed in 445, the Generator may
determine current and/or historical variability of basis (i.e.,
difference) between SPZ premiums and/or strike prices for a given
collection of SPZs, such as a collection that is incorporated as
part of a Purchaser offering. Based on that information, the
Generator may yield strike price and/or premium adjustments and/or
a premium adjustment table, as described in greater detail in FIGS.
10-14. The adjustment of premium price based on geographic
considerations and/or the generation of a premium adjustment table
may be relevant, in one implementation, to only those fuel
offerings that cover fuel purchases made in multiple SPZs.
[0088] Customer Interaction Flow
[0089] FIG. 5 illustrates an aspect of purchase and fuel offering
exercise for one embodiment of the Fuel Offering Generator. Prior
to discussing process FIG. 5 in detail, it is instructive to first
review, in a broad sense, the Purchaser's perspective of Fuel
Offering Generator. The Purchaser may be an entity who desires to
purchase fuel offering to mitigate fuel costs over some period of
time. In accordance with this goal, a number of fuel offerings may
be made available for purchase by the Distributor. A fuel offering
may include specific details regarding the terms and conditions, as
shown in the below example.
TABLE-US-00006 Type Quantity Strike Price Tenor Premium Diesel 30k
gallons $2.50 3 months $0.40
[0090] The example fuel offering has a tenor of three months,
during which the Purchaser may exercise the fuel offering on up to
30 k gallons of diesel fuel at a strike price of $2.50. The premium
may, in some embodiments, represents the measure of risk associated
with the fuel offering, i.e., higher premiums may correlate to
higher risk fuel offerings. By purchasing the fuel offering shown
above, the Purchaser mitigates the risk of fuel costing in excess
of $2.90 (strike+premium) over the three month tenor. That is, by
purchasing the fuel offering, the Purchaser pays $0.40 for the
ability or right to purchase fuel for $2.50, up to the stipulated
number of gallons (e.g., 30 k). In some embodiments, an offer price
of $2.90 (strike+premium) may represent the Purchaser's effective
purchase price for any purchase made within the 3 month period for
up to 30 k gallons of fuel if the cost of fuel over that three
month period exceeds the offer price. As is apparent to the astute
reader, exercising the fuel offering does not clearly provide
economic benefit to the Purchaser for prevailing pump prices and/or
national average prices below $2.90, though it may still be
beneficial to the Purchaser to exercise the offering between $2.50
and $2.90 because the premium is, at that point, a sunk cost.
[0091] As shown in FIG. 5, the Purchaser purchases a fuel offering
with a particular strike price for certain fuel volume (N) 505. At
some point subsequent to the purchase of the fuel offering, the
Purchaser may decide to purchase X gallons of fuel 510. In so
doing, the Purchaser may elect to exercise the offering on the fuel
purchase of X gallons or not 515, generally depending upon the pump
price of fuel at the time of purchase. In the case where the cost
of fuel is less than the strike price, it does not make economic
sense for the Purchaser to exercise the offering, for reasons
described above, and in such a situation, the Purchaser may simply
pay the prevailing pump price 525. Alternatively, in the case where
the cost of fuel is greater than the strike price, particularly
where the cost of fuel is greater than the strike price+premium, it
may make economic sense to exercise the fuel offering 520, though
the Purchaser may not necessarily exercise the fuel offering (e.g.,
if the Purchaser expects the cost of fuel to be even higher the
next day). In some embodiments, the fuel offering may be
automatically exercised whenever the cost of fuel is greater than
the strike, or alternatively, the strike+premium. In another
embodiment, the fuel offering is not exercised automatically. If
the Purchaser decides to exercise the fuel offering 515, the
Purchaser profile (e.g., a data file that includes information
regard the Purchaser's fuel offering(s)) or like information source
regarding the fuel offering may be queried to determine the unused
fuel volume (R) remaining for the fuel offering 520. A
determination is then made as to whether the remaining volume (R)
is equal to or greater than purchase volume (X) 530. If not, then
the Purchaser pays the prevailing pump rate 525 for the full
purchase. In another embodiment the Purchaser may be able to
exercise the fuel offering for a partial amount of the full
purchase (i.e., for the remaining volume). Otherwise, a
determination is made regarding whether the prevailing pump price
(or other price, such as the national average price, as indicated
by the implementation) is greater than the strike price 540. If so,
the Purchaser's account is credited with the difference (D) between
the strike price and the pump price, multiplied by the number of
gallons (X) purchased 545. Otherwise, in the case where the
prevailing pump price is determined to be less than the strike
price 540, the Purchaser pays the prevailing pump price 550.
[0092] FIG. 5B provides an example strike vs. exercise graph for
one embodiment of the Fuel Offering Generator. The strike 552 is
the strike price (e.g., $1.50) of the fuel offering and the
exercise boundary 553 represents the price over which exercise of
the fuel offering is approximately economically optimal over the
tenor (e.g., 6 months) of the offering. The exercise boundary 553
is initially the strike 552 plus an initial boundary and decreases
to the strike at the end of the tenor of the offering. In some
embodiments, the optimal initial boundary is found by maximizing
the average pay-out across a range of initial boundaries, and the
resulting exercise behavior (e.g., economically optimal exercise)
used to model Purchaser behavior, including average pay-out.
[0093] FIGS. 5C and 5D provide further illustrate payout aspects
for some embodiments. FIG. 5C provides a flow diagram for an
embodiment in which the Purchaser prepays the strike price (e.g.,
pays the premium plus the strike) to the Provider 561 and/or
Distributor at the time of purchasing the fuel offering. When the
Purchaser subsequently makes a fuel purchase 562, there is a
determination of whether the pump price is greater than the strike
price 563, and if not, the Purchaser is charged the pump price 564.
If the pump price is greater than the strike price 563 (or another
threshold price as determined by the implementation), in one
embodiment, the Purchaser's fuel offering(s) is(are) exercised and
Purchaser's profile is updated 565, and the Provider (and/or
Distributor) pays out the pump price 566 (e.g., to the fuel
retailer). In another embodiment, if the pump price is greater than
the strike price 563 (or like threshold price), the Purchaser may
be notified and queried to determine if they wish to exercise their
offering(s) 567 with the Purchaser's response 568 determining the
next action (564/565).
[0094] FIG. 5D provides a flow diagram for an embodiment in which
the Purchaser pays the premium to the Provider 571 and/or
Distributor at the time of purchasing the fuel offering. When the
Purchaser subsequently makes a fuel purchase 572, there is a
determination of whether the pump price is greater than the strike
price 573, and if not, the Purchaser is charged the pump price 574.
If the pump price is greater than the strike price 573 (or another
threshold price as determined by the implementation), in one
embodiment, the Purchaser's fuel offering(s) is(are) exercised and
Purchaser's profile is updated 575, the Purchaser is charged the
strike price 576 (e.g., pays the strike price to the fuel retailer)
and the Provider (and/or Distributor) pays out the difference
between the strike and the pump price 577 (e.g., to the fuel
retailer). In another embodiment, if the pump price is greater than
the strike price 573 (or like threshold price), the Purchaser may
be notified and queried to determine if they wish to exercise their
offering(s) 578 and the Purchaser's response 579 decides the next
action (574/575).
[0095] Minimum Usage Requirement
[0096] FIG. 6 illustrates an aspect of enforcing minimum usage of
fuel offerings in an embodiment of the Fuel Offering Generator.
Prior to discussing FIG. 6 in detail, it is instructive to first
briefly review the structure and purpose of imposing minimum fuel
usage consumption. In some embodiments, a fuel offering sold to a
Purchaser may include a restriction directed to the manner in which
the fuel offering is exercised over the specified tenor. As one
example, consider an example fuel offering with the terms
below.
TABLE-US-00007 Type Quantity Strike Price Tenor Premium Diesel 30k
gallons $2.50 3 months $0.40
[0097] The exemplary terms of the illustrative fuel offering
indicate a tenor of three months, during which the Purchaser may
purchase up to 30 k gallons of fuel at a strike price of $2.50. To
preclude the consumption of 30 k gallons all the end, or in
disproportionate amounts over the three month tenor, it is
contemplated that some embodiments may impose a minimum monthly
usage requirement. In this manner, more predictable exercise of
fuel offerings may be achieved. Of course, in other embodiments,
the restriction period may be of a longer or shorter duration
(e.g., quarterly minimum usage, weekly minimum usage) in accordance
with the fuel offering tenor, and may be allocated in a variable
fashion.
[0098] Referring now to FIG. 6, in one embodiment, enforcing a
monthly minimum usage begins with a determination regarding whether
the end of the current calendar date coincides with the end of the
month 605 or some other stipulated period. The Purchaser's profile
is queried to determine the monthly fixed volume (F), which
represents the amount that the Purchaser must use per month 610.
The Purchaser's profile is queried a second time to retrieve the
total quantity of fuel already consumed by the Purchaser for the
current month, (U) 615. A determination is then made regarding
whether the total quantity of fuel already consumed in the current
month (U) is greater than the fixed volume (F) 620. If so, the
process terminates because it is determined that the Purchaser has
already purchased in excess of the fixed volume (F) for the current
month. Otherwise, a calculation is performed to compute the
difference (D) between the fixed volume (F) and the total quantity
of fuel already consumed (U) 625. A further evaluation is performed
to determine the amount to be credited to the Purchaser's account
for the unused portion. The further calculation determines an
amount to be credited (V) corresponding to the value of (D) minus
any fees (e.g., due to failure to meet fixed volume requirements),
multiplied by the strike price 630. This amount (V) may then be
credited back to the Purchaser's account 635.
[0099] For example, in one embodiment, if a Purchaser purchases a
fuel offering for a quantity of 500 gallons of gasoline over a
tenor of 10 months, the fuel offering may specify a minimum monthly
usage of 50 gallons, i.e., F=50. In this exemplary case, if the
Purchaser uses less than 50 gallons in the first month (e.g., 20
gallons), then the balance, 30 gallons (i.e., the unused portion),
is deducted from the Purchaser's total available volume, leaving
450 gallons at the start of the second month. In one embodiment, in
the event of a prepay, the strike price for the deducted (i.e.,
unused) gallons may be returned to the Purchaser, while in another
embodiment the prepayed strike for the deducted gallons are not
returned to the Purchaser. Alternatively, if the Purchaser uses an
amount in excess of 50 in a particular month (e.g., 70 gallons),
then no action is required in that the Purchaser has met his or her
minimum usage requirement for the month.
[0100] Maximal Fuel Usage Restrictions
[0101] With reference now to FIG. 7, there is shown a process for
enforcing periodic (e.g., monthly) maximum fuel usage restrictions
on fuel offerings. Prior to discussing process in detail, it is
instructive to first briefly review the structure and purpose of
monthly fuel usage restrictions. In general, a fuel offering sold
to a Purchaser may include a restriction directed to the manner in
which the fuel is consumed over the tenor of the offering. As one
example, consider the following exemplary fuel offering--
TABLE-US-00008 Type Quantity Strike Price Tenor Premium Diesel 30k
gallons $2.50 3 months $0.40
[0102] The exemplary illustrative offering has a tenor of three
months, during which the Purchaser may consume up to 30 k gallons
of fuel with a strike price of $2.50/gallon. To preclude the
consumption of 30 k gallons all at once, or in grossly
disproportionate amounts over the three month tenor, it is
contemplated to impose a monthly cap (i.e., monthly maximum usage
restriction). In this manner, more predictable consumption and/or
exercising of offerings may be achieved. Of course, in other
embodiments, the restriction period may be of a longer or shorter
duration (e.g., quarterly cap, weekly cap) in accordance with
offering tenor.
[0103] Referring again to FIG. 7, the process for enforcing a
monthly cap restriction begins with a Purchaser 220 attempting to
exercise an offering on a quantity of fuel (e.g., "N" gallons) 701.
In response, the Purchaser's profile is queried to determine a cap
(e.g., monthly cap) amount specified as offering parameters within
an offering owned by the Purchaser. The Purchaser's profile may
also be queried to retrieve a total quantity of fuel, "M",
previously consumed by the Purchaser for the current month 703. A
determination is then made as to whether the sum of the fuel
already consumed "M" by the Purchaser in the current month plus the
amount of fuel "N" on which the Purchaser seeks to exercise his or
her offering(s) is less than or equal to the monthly cap
restriction 705. If so, the Purchaser is permitted to exercise on
"N" gallons of fuel 707. Otherwise, a determination is made of the
remaining amount of fuel that may be allocated to the Purchaser to
stay within the limitations of the imposed monthly cap 709. The
remaining amount which may be allocated is an amount "B", less than
the requested amount "N", which may be determined by subtracting
the amount of fuel already consumed in the month "M" from the
monthly cap. The Purchaser may, in one implementation, be issued a
notice indicating that the Purchaser's remaining allowable monthly
allocation is "B" gallons 711. The Purchaser may be offered the
choice to proceed or not with the exercise of his or her offering
on "B" gallons 713. In the case where the Purchaser elects not to
proceed with exercising the offering, the Purchaser may be charged
the pump price 715. Otherwise, in the case where the Purchaser
elects to proceed, the Purchaser is permitted to exercise his or
her offering on "B" gallons 717 and the Purchaser's profile is
updated to reflect the exercise of the offering 719. In an
alternative embodiment, the Purchaser may be automatically charged
the pump price if the exercise puts the Purchaser over the cap for
the period.
[0104] In various embodiments, maximal usage restrictions may be
implemented on a periodic, quasi-periodic, or non-periodic basis.
For example, usage caps may be implemented and/or varied yearly,
seasonally, monthly, weekly, daily, hourly, based on fiscal
quarters, based on holiday travel patterns, based on expected
high-traffic time periods, and/or the like. In one embodiment, the
usage cap per period may be uniform over the tenor of the offerings
owned by a Purchaser, such as being set to the total quantity of
fuel covered by the offerings divided by the number of periods
covered by the offering tenor. In another embodiment, the usage cap
per period may vary from period to period.
[0105] Cap Payout Restriction
[0106] With reference now to FIG. 8, there is shown a process for
enforcing a cap payout restriction on fuel offerings in one
embodiment. Prior to discussing the process in detail, it is
instructive to first briefly review the structure and purpose of
cap payout restrictions. In general, a fuel offering sold to a
Purchaser may include a restriction directed to limiting the
difference paid between the strike price and some reference price
(e.g., pump price, national average price, spot price, and/or the
like) in order to minimize Provider and/or Distributor exposure
and/or liability. As one example, consider the following exemplary
fuel offering--
TABLE-US-00009 Type Quantity Strike Price Tenor Premium Diesel 30k
gallons $2.50 3 months $0.40
[0107] The exemplary illustrative offering has a tenor of three
months, during which the Purchaser may consume up to 30 k gallons
of fuel with a strike price of $2.50/gallon. To preclude the
Purchaser from exercising the offering on purchases where the pump
price or national average price is far in excess of the strike
price, it is contemplated to impose a cap restriction on the
payout. In other words, a payout cap may be established such that
when the Purchaser exercises his or her offering, the amount paid
cannot exceed the payout cap. In this manner, a higher degree of
certainty is guaranteed regarding payouts. More particularly, the
payout is assured not to exceed the payout cap. For example, if a
Purchaser seeks to exercise an offering with a strike price of
$2.50/gallon on fuel with a reference price of $3.50/gallon, and
the payout cap is set to $0.50/gallon, the Purchaser will may only
redeem $0.50/gallon rather than the $1.00/gallon he or she would
receive in the absence of the payout cap. In an alternative
embodiment, it is contemplated that the payout cap may be
configured as a price cap, whereby any reference price exceeding
the price cap on which a Purchaser seeks to exercise an offering
may be replaced by the price cap for the purpose of determining
payout obligations. In a non-prepay example, if a Purchaser seeks
to exercise an offering with a strike price of $2.50/gallon on fuel
with a reference price of $3.50/gallon, and the price cap is set to
$3.00/gallon, the Purchaser will may only redeem $0.50/gallon
rather than the $1.00/gallon he or she would receive in the absence
of the price cap. In yet another embodiment, a payout and/or price
cap may be expressed as some function of the premium and/or strike
price (e.g., a percentage of the strike price).
[0108] Referring now to FIG. 8 in an implementation employing a
payout cap, a Provider and/or Distributor may receive a notice of
Purchaser exercise of an offering on some quantity of fuel 805. The
Purchaser's profile may be queried to seek and/or extract a
specified payout cap amount, "K" 810. A determination is made 815
as to whether such a cap exists in the Purchaser profile and, if
not, then a basic payout amount is formulated 820 without
consideration of a payout cap. Otherwise, the Generator queries a
reference price corresponding to the offering being exercised. In
one implementation, the Generator may determine whether the
offering is subject to a pump-price reference price (e.g., the
price of the retailer at which the fuel is purchased) or a
financial structure reference price (e.g., a regional average
price, a national average price, and/or the like) 825. In the
former case, the reference price, Z, may be set to the pump price
835, and in the latter case, Z may be set to a national average
price. A strike price, S, corresponding to the offering being
exercised may be queried from a Purchaser profile 840, and a
determination made of the difference, D, between S and Z 845. If
that difference does not exceed the payout cap, K, then a basic
payout is prepared 855 without consideration of a payout cap.
Otherwise, the payout reimbursement to the Purchaser's account may
be made based on the volume of fuel on which the offering is
exercised subject to the payout restriction K.
[0109] In an alternative embodiment wherein a price cap is
specified rather than a payout cap, the comparison at 850 would be
between the price cap and the reference price, Z, and the payout
amount at 860 would be based on the difference between the price
cap and the strike price.
[0110] In various embodiments, price and/or payout caps may be
implemented on a periodic, quasi-periodic, or non-periodic basis.
For example, price and/or payout caps may be implemented and/or
varied yearly, seasonally, monthly, weekly, daily, hourly, based on
fiscal quarters, based on holiday travel patterns, based on
expected high-traffic time periods, and/or the like. In one
embodiment, price and/or payout caps per period may vary from
period to period. In another embodiment, multiple different price
and/or payout caps may be specified for different circumstances,
including different locations, regions, SPZs, retailers,
Purchasers, Distributors, Providers, times, periods of time, and/or
the like.
[0111] Structural Constraint
[0112] FIG. 9 illustrates one aspect of structural constraints in
an embodiment of Fuel Offering Generator. Specifically, FIG. 9
provides details for implementing and/or enforcing a structural
constraint on the amount (or percentage) of gas volume that may be
reimbursed upon exercising a fuel offering for a particular fuel
purchase of a volume (N). In general, a fuel offering sold to a
Purchaser may include a restriction directed to the amount or
percentage volume of a fuel purchase considered eligible for
reimbursement upon exercising the fuel offering during its tenor.
As one example, consider the following exemplary fuel offering
terms--
TABLE-US-00010 Type Quantity Strike Price Tenor Premium Diesel 30k
gallons $2.50 3 months $0.40
[0113] The exemplary illustrative fuel offering has a tenor of
three months, during which the Purchaser may exercise the fuel
offering on up to 30 k gallons of fuel at a strike price of $2.50.
To discourage the Purchaser from exercising the fuel offering at an
fuel retailer that is relatively more expensive that other fuel
retailers (e.g., a gas station that sells at $3.20 when most other
stations sell at $3.00), some embodiments may impose a structural
constraint that limits and/or specifies the amount (or percentage)
of a fuel purchase on which a Purchaser may exercise the fuel
offering.
[0114] As shown in FIG. 9, enforcing a structural constraint
pertaining to the amount (or percentage) of a fuel purchase that
may be reimbursed upon exercising a fuel offering for a specified
purchase volume of gas (N) begins with a Purchaser attempting to
exercise a fuel offering on a purchase of (N) gallons of fuel 905.
In response to the Purchaser's attempt to exercise the offering on
(N) gallons, the Purchaser's profile may be queried to retrieve
associated structural constraint(s), defined herein as (Q) 910. In
the embodiment of FIG. 9, this constraint defines a percentage
multiplier to be applied to the purchase volume (N) to ascertain a
reimbursable volume of fuel (R), as will be described. A
determination is made regarding whether the query of the
Purchaser's profile yields the structural constraint, that is, does
the Purchaser's profile include the structural constraint, i.e.,
variable (Q). If not, the Purchaser may exercise the offering on
(N) gallons of fuel at the basic payout rate 920. Otherwise, a
determination is made regarding the amount of fuel (R) that is
considered to be reimbursable, in this case, a percentage of the
total purchase amount (N) on which the Purchaser desires to
exercise the offering on 925. For some embodiments, the
determination may be a computation comprising multiplication of the
(N) gallons of total fuel purchase by the constraint parameter (Q)
to yield a reimbursable volume of fuel (R). Reimbursement is then
made to the Purchaser's account based on the volume (R) 930, i.e.,
the fuel offering is exercised on (R) and not the total purchase
(N). In some embodiments, the Purchaser may be notified of the
restricted reimbursement 935. Depending on the embodiment,
structural constraints may be implemented on a fixed amount per
purchase and/or be distributed over the tenor of a fuel offering in
a periodic, quasi-periodic, or non-periodic manner.
[0115] Geography
[0116] In one embodiment, the Fuel Offering Generator may utilize
single price zones (SPZs) in determining a price matrix, strike
price and/or premium of a fuel offering. SPZs may define, for
example, a geographic area and/or other grouping, such as certain
station groups, station brands and/or the like, in which a fuel
offering may be exercised (i.e., where the fuel offering Purchaser
may get his or her selected amount of fuel at the single, preset
price).
[0117] In one embodiment, as shown in FIG. 10, the Fuel Offering
Generator may generate an SPZ map 1005. In certain embodiments, a
fuel offering may be restricted to only one SPZ. In another
embodiment, the exercise of the fuel offering may be restricted to
multiple, pre-selected SPZ(s), i.e., the Purchaser selects one or
more SPZs when purchasing the fuel offering, and can only exercise
the fuel offering within the identified SPZ(s). In an alternative
embodiment, the Purchaser may be allowed to exercise the fuel
offering outside of the single or multiple pre-selected SPZ(s), but
doing so may be associated with an additional fee/penalty. Based on
the SPZ map (and associated price matrix data), the Fuel Offering
Generator may create pricing structures and/or strike adjustments
for multi-SPZ Purchasers 1010. Alternatively, or additionally, the
Fuel Offering Generator may determine fees/penalties for exercising
fuel offerings outside of the pre-selected SPZ(s) 1011. In one
embodiment, the pricing structures, strike adjustments and/or
fees/penalties are fixed at purchase (e.g., a Purchaser buys a fuel
offering for SPZ1 and locks in an adjustment of $0.25 per gallon
for SPZ2 for purchases, if any, in SPZ2). In another embodiment,
the pricing structures, strike adjustments and/or fees/penalties
may be floating and/or variable until the time of exercise. The
Fuel Offering Generator may also manage Purchasers' utilization of
SPZs 1015, including managing Purchasers' pricing structures,
strike adjustments and/or fees/penalties.
[0118] FIG. 11 provides additional detail regarding SPZ mapping and
management for an embodiment of the Fuel Offering Generator. Upon
receiving a request to determine SPZs 1101, the Fuel Offering
Generator may determine if the SPZs are to be set to existing
geographic boundaries 1105. If the SPZs are to be set to existing
geographic boundaries 1105, the Fuel Offering Generator determines
what scale (e.g., city, county, metropolitan area, state and/or
region) for setting the boundaries is appropriate 1110. In one
embodiment, the size of the SPZ may be particularly relevant in
pricing associated fuel offerings, for example, the fuel offering
for a large SPZ may be relatively expensive due to adverse
selection and/or moral hazard issues due to a larger distribution
and/or geographic area. Similarly, in one embodiment, the Fuel
Offering Generator may determine SPZs to minimize excluding or
"shutting out" potential Purchasers, for example, Purchasers in
upstate New York may prefer a fuel offering in which geographic SPZ
determination is based on county, rather than state. The Fuel
Offering Generator may also account for other issues in determining
SPZs, such as the smaller the SPZ, the more restrictive the fuel
offering and/or the more complicated the adjustments needed to use
the fuel offering products across SPZs. Based on such information,
the Fuel Offering Generator may then set the boundaries of the SPZs
to the appropriate existing geographic boundaries 1115. While some
embodiments may set SPZs according to one scale, other embodiments
may combine scales in constructing SPZs (e.g., one SPZ's boundary
may be set to a city, while another SPZ's boundary is set to a
state). The Fuel Offering Generator may then determine the price
matrix for each SPZ 1145 and store the price matrices in a SPZ
table 1150.
[0119] If the SPZs are not to be set to existing geographic
boundaries 1105, the Fuel Offering Generator collects 1120 and
stores 1125 a geographic distribution of pricing variables. The
Fuel Offering Generator may then perform a similarity analysis on
the geographically distributed pricing variables 1130 and, as
described previously, determine the scale or granularity with which
the SPZ divisions will be set 1135. The Fuel Offering Generator may
then assign SPZs according to the similarity analysis and/or
determined granularity 1140. In a further embodiment, the assigned
geographic boundaries may include, but are not limited to, existing
geographic boundaries. The Fuel Offering Generator then determines
the price matrix for each SPZ 1145 and stores the price matrices in
an SPZ table 1150.
[0120] FIG. 12 provides additional detail regarding the SPZ pricing
aspect of an embodiment of Fuel Offering Generator. A Purchaser
interacts with the Fuel Offering Generator and specifies desired
terms for a fuel offering 1205. The Purchaser then specifies one or
more SPZs in which they want the ability to exercise the fuel
offering 1210. The Fuel Offering Generator then determines is the
Purchaser has specified multiple SPZs 1215, and if not, serves the
fuel offering pricing based for the desired terms and selected SPZ
1220. In one embodiment, if the Purchaser has specified multiple
SPZs 1215, the Fuel Offering Generator identifies the most
expensive SPZ of the multiple SPZs based on the desired terms 1225
and derives an adjustment table (e.g., a strike adjustment table)
for the other specified SPZs 1230. In other embodiments, the Fuel
Offering Generator may derive an adjustment table for a Purchaser's
primary SPZ (e.g., the Purchaser's default location, most traveled
location, and/or the like), with credits for exercising fuel
offerings in relatively cheaper SPZs and debits or penalties for
exercising in relatively more expensive SPZs. The Fuel Offering
Generator may then serve the fuel offering pricing based on the
most expensive selected SPZ and the derived adjustment table for
the Purchaser's desired terms 1235.
[0121] Moving momentarily back to the topic of restrictions and
constraints, in some embodiments, the Fuel Offering Generator may
provide fuel offerings that in which there is a withdrawal expiry,
i.e., a certain amount or percentage of the initial amount (e.g.,
initial volume amount of the fuel offering) that must be exercised
before a specified time or else be subject to expiration. For
example, the specifications of a certain fuel offering may include
a particular strike price, a total volume of 1200 gallons, a term
of one year, and requirement that the Purchaser must exercise at
least 8.33% (i.e., purchase at least 100 gallons) each month or
else lose the difference. In one embodiment, the withdrawal expiry
is set uniformly, for example, if the term of the fuel offering is
one year, and the length of a sub-period is one month, 8.33% of the
initial total of the fuel offering must be exercised by the end of
each month or be subject to expiration, while in another
embodiment, the withdrawal expiry could be non-uniform. FIG. 13A
illustrates the available exercise volume per month for a fuel
offering with a term of one year, an initial exercisable volume of
1200 gallons, and a withdrawal expiry of 8.33% (100 gallons) per
month. As can be seen in the figure, the Purchaser may exercise any
or all of the 1200 gallons in the first month, but only a maximum
of 100 gallons by the last month.
[0122] In one implementation, the required exercise could be based
on a cumulative amount, for example, in the situation described
above, if a Purchaser exercised 20% in the first month and only 1%
in the second month, no part of the fuel offering would be subject
to expiration (i.e., 20%+1% is greater than 8.33%+8.33%).
Alternatively, in another implementation, the withdrawal expiry
could be periodic, so that either a certain percentage of the
initial or remaining amount must be exercised each period or be
subject to expiration. In one embodiment, the Purchaser may
exercise the entire remaining (i.e., non-expired) amount of the
fuel offering, while in another embodiment, the fuel offering may
also be subject to usage caps.
[0123] FIG. 13B provides additional detail for the withdrawal
expiry aspect of one embodiment of the Fuel Offering Generator.
After generation of the fuel offering, the Fuel Offering Generator
checks whether it is the end of the specified sub-period 1305, and
if it is not, cycles/waits 1335 and re-checks 1305. If it is the
end of the specified sub-period 1305, the Fuel Offering Generator
queries the Purchaser profile for the specified sub-period expiry
volume 1310 and the Purchaser's sub-period exercise volume 1315. If
the Purchaser's sub-period exercise volume is greater than or equal
to the specified sub-period expiry volume 1320, then no part of the
Purchaser's fuel offering expires and the Fuel Offering Generator
waits for the end of the next period 1335. However, if the
Purchaser's sub-period exercise volume is less the specified
sub-period expiry volume 1320, then the Fuel Offering Generator
determines the difference between the sub-period expiry volume and
the sub-period exercise volume 1325 and expires that amount from
the Purchaser's fuel offering, updates the Purchaser's profile
1330, and waits for the end of the next sub-period 1335. In one
embodiment, if the Purchaser prepaid the strike price, the strike
price for the expired amount may be returned (but not the premium).
Alternatively, some embodiments do not return the prepaid strike
price.
[0124] Returning to the topic of geography, FIG. 14 provides an
overview of one aspect of the multi-SPZ fuel offering exercise in
an embodiment of the Fuel Offering Generator. The Fuel Offering
Generator receives Purchaser exercise information for a fuel
offering 1405, for example, in one implementation, via an
electronic credit transaction. The Fuel Offering Generator may then
determine or extract from the exercise information the location
information (e.g., address of the gas station) where the Purchaser
exercised the fuel offering 1410, and matches the location to the
corresponding SPZ 1415. If the SPZ corresponding to the exercise
location information is also the most expensive SPZ of the
Purchaser's specified SPZs 1420, then the transaction is completed
1425. If the SPZ is not the most expensive SPZ of the Purchaser's
specified SPZs 1420, the Fuel Offering Generator extracts the
appropriate discount from the Adjustment Table 1430 and credits the
Purchaser's account 1435. In a further embodiment, an adjustment
table may also include penalties that could be charged to a
Purchaser for exercising the fuel offering outside of a
pre-selected SPZ (if allowed by the Fuel Offering Generator).
[0125] In one embodiment, the adjustment table is a strike
adjustment table indicating the refund or rebate the Purchaser
would receive if they exercised the fuel offering in one of the
selected SPZs which was not the most expensive SPZ. For example, if
a Purchaser selects a fuel offering with two SPZs, Manhattan and
Pittsburgh, and the Manhattan SPZ is the most expensive, the
Purchaser would pay for fuel offering based on the Manhattan
indicated price. However, if the strike adjustment table indicated
an adjustment of $0.10 for Pittsburgh, and the Purchaser exercised
the fuel offering in Pittsburgh, the Purchaser may receive a
corresponding credit or rebate for exercising the fuel offering in
the less expensive SPZ.
[0126] Purchaser Behavior
[0127] FIGS. 15 through 18 illustrate the process flow for one
aspect of Purchaser behavior management in an embodiment of the
Fuel Offering Generator. As shown in FIG. 15, the Fuel Offering
Generator may collect relative pump price usage data for a
Purchaser 1505 (for example, the pump price at which the Purchaser
exercises one or more fuel offerings relative to the pump price at
which other Purchasers with like characteristics, such as location
and/or similar fuel offerings, exercise fuel offerings).
Alternatively, or additionally, other Purchaser behavior data such
as the relative time-from-purchase-to-exercise of fuel offerings,
suboptimal exercise traits (e.g., whether the Purchaser typically
exercises the fuel offering suboptimally, and if so, if said
exercise is pre-optimal and/or post-optimal), and/or the like, as
well as Purchaser characteristics (e.g., demographic information)
may also be collected. Depending on the implementation, the above
data may be collected periodically and/or continuously. In some
embodiments, the collected data for multiple Purchasers may be
amassed and marketing and behavior analyses performed to identify
relevant trends and characteristics of Purchasers, including data
regarding adverse selection (e.g., within a particular SPZ, if
there is more interest in fuel offerings among Purchaser's who
typically pay higher prices) and/or moral hazard information (e.g.,
if Purchaser's start frequenting more expensive fuel retailers
after purchase of fuel offerings).
[0128] The Fuel Offering Generator may utilize the collected data
to characterize a Purchaser, and the characterization may be based
on the Purchaser's current information and/or aggregate
information. If the characterization is based on aggregate
information 1510, the Fuel Offering Generator determines an
aggregate Purchaser behavior profile 1515, while if the
characterization is based on current Purchaser information 1510,
the Fuel Offering Generator determines a current Purchaser behavior
profile 1520. Based on the Purchaser behavior profile, the
Purchaser may be grouped, rated and/or otherwise identified, where
such identification is used in optimizing subsequent interactions
with the Purchaser. For example, as shown in the figure, in one
embodiment, the Purchaser may be identified as preferred,
undesirable, or indifferent 1525. In one implementation, the
grouping may reflect the relative value the Purchaser represents
(e.g., profitable, unprofitable, or break-even, respectively). The
identification may be stored in the Purchasers profile 1530, and in
some embodiments, the Purchaser may be notified of their associated
status and/or associated incentives or penalties (as described
below in FIGS. 16, 17 and 18).
[0129] As shown in FIG. 16, in one embodiment, if the Purchaser is
preferred, the Fuel Offering Generator may determine if the
Purchaser's length of stay (i.e., the time the Purchaser has had a
relationship with the Fuel Offering Generator and/or associated
entities) is greater than a certain threshold 1640, the Fuel
Offering Generator may associate a length of stay incentive package
(such as discounts, rebates, and/or the like) with the Purchaser's
account and/or profile 1645. If the Purchaser's length of stay is
not greater than a certain threshold 1640, the Fuel Offering
Generator may associate another style of incentive package with the
Purchaser's account and/or profile 1650. Depending on the Purchaser
characteristics, rewards or incentives may be directed to retain
Purchasers, encourage increased use and/or acquisition of fuel
offerings, and/or otherwise encourage or modify future Purchaser
behavior.
[0130] Similarly, FIG. 17 shows Purchaser incentive structures
1780, 1785, 1790 related to those shown in FIG. 16 (1640, 1645,
1650, respectively), and further illustrates an embodiment in which
the Fuel Offering Generator determines if the Purchaser is in a
high variance zone 1770 (e.g., Purchaser could be exercising fuel
offerings at relatively expensive gas stations, but is not doing so
as indicated by their preferred status), and if so, associating a
supplemental bonus incentive package with the Purchaser's account
and/or profile 1775 (e.g., a package that reinforces/rewards
positive Purchaser behavior).
[0131] Alternatively, if the Purchaser is undesirable 1525, in one
embodiment, as shown in FIG. 18, the Fuel Offering Generator may
determine if the Purchaser represents aggregate undesirability 1855
(e.g., the Purchaser has been undesirable for a significant portion
of the relationship between the Purchaser with the Fuel Offering
Generator and/or associated entities), and if so, may terminate the
Purchaser's account and/or not provide the Purchaser with
additional fuel offerings. If the Fuel Offering Generator
determines the Purchaser does not have aggregate undesirability
1855, a penalty package (or an incentive package that directs the
Purchaser towards preferred behaviors) may be associated with the
Purchaser's profile and/or account 1865.
[0132] FIG. 19 illustrates the process flow for one aspect of
Purchaser behavior management in one embodiment of the Fuel
Offering Generator. The Fuel Offering Generator may sample an SPZ
pump price distribution 1905 in order to extract therefrom one or
more statistical quantities characterizing fuel retailers within
the SPZ. In one implementation, the Generator samples pump prices
across all retailers within an SPZ, while in another implementation
the Generator samples pump prices from some representative subset
of fuel retailers within the SPZ. In still another embodiment, the
Generator may sample pump prices across a subset of retailers in
the SPZ that excludes one or more non-participating fuel retailers
from consideration. The Generator may determine a measure of pump
price spread (.sigma.) 1910, such as a standard deviation,
variance, and/or the like. A determination is made 1915 as to
whether this pump price spread measure exceeds a pre-established
threshold, and if not, then the process of FIG. 19 completes with
no further action. Otherwise, if the pump price spread measure
exceeds the threshold 1915, then fuel retailers in the SPZ may be
segmented into a plurality of price groups based on the relation of
their pump prices to the average pump price 1920. For example, fuel
retailers may be segmented and/or grouped based on the number of
standard deviations away from the mean pump price that their pump
prices fall. In one implementation, a fuel retailer's current pump
price is considered, while in another implementation the fuel
retailer's pump price averaged over some period of time is
considered. In some embodiments, the segmentation information may
be used by the Fuel Offering Generator as an input in determining a
price matrix and/or in constructing an appropriate hedging
strategy. Based on this segmentation, the Generator may incentivize
or penalize Purchaser solicitation of particular fuel retailers
1925. In some embodiments, incentives and/or penalties may be
provided and/or assessed immediately (i.e., communicated to
Purchaser's to directly influence behavior), while in a further
embodiment, such incentives and/or penalties may take the form of
modified premiums, price adjustments and/or restrictions associated
with subsequent fuel offerings.
[0133] FIG. 20 illustrates an aspect of fuel retailer incentivizing
for some embodiments of the Fuel Offering Generator. The Fuel
Offering Generator samples SPZ pump price distribution 2005 for one
or more statistical quantities characterizing fuel retailers within
the SPZ, in one embodiment in the process as described in FIG. 19.
The Fuel Offering Generator may determine a measure of pump price
spread (o) 2010, such as a standard deviation, variance, and/or the
like, and a determination is made 2015 as to whether this pump
price spread measure exceeds a pre-established threshold, and if
not, then the process of FIG. 20 completes with no further action.
Otherwise, if the pump price spread measure exceeds the threshold
2015, the Fuel Offering Generator segments fuel retailers in the
SPZ into a plurality of price groups based on the relation of their
pump prices to the average pump price 2020, similar to FIG. 19
above. The Fuel Offering Generator then determines the fuel
offering utilization within and/or across the price groups 2025 and
identifies if, for a particular price group and/or specific fuel
retailer(s) within the price group, there is minimum utilization by
Purchasers 2030 (i.e., most Purchasers are not exercising their
fuel offering(s)s at the fuel retailers within the price group). In
some embodiments, information regarding fuel offering utilization
within and/or across the price groups may be used by the Fuel
Offering Generator as an input in determining a price matrix and/or
in constructing an appropriate hedging strategy.
[0134] If there is not minimum utilization 2030, in particular, if
there is not minimum utilization of the more expensive fuel
retailers by Purchasers, the Fuel Offering Generator does not
continue the process of FIG. 20, and in a further embodiment, the
Fuel Offering Generator may reassess associated pricing,
incentives, penalties, premiums, price adjustments and/or
restrictions, for example, as described in FIG. 19. If there is
minimum utilization of a price group and/or particular fuel
retailer(s) by Purchasers 2030, as shown in FIG. 21, the Fuel
Offering Generator may determine the group mobility premium 2135.
In one embodiment, the group mobility premium represents the value
that inclusion in another price group (and the associated increase
in Purchaser solicitation) represents to the fuel retailer(s),
while in another embodiment the group mobility premium represents
the cost of allowing and/or not disincentivizing Purchaser
solicitation of the fuel retailer(s). In yet another embodiment,
the group mobility premium represents the value that Purchasers
place on having access to the particular price group and/or fuel
retailer(s). The group mobility premium may, in some embodiments,
by utilized by the Fuel Offering Generator as an input in
determining a price matrix and/or in constructing an appropriate
hedging strategy. In one embodiment, the Fuel Offering Generator
and/or associated entities may utilize the group mobility premium
in offering or negotiating group mobility (e.g., the removal of
restrictions and/or penalties to allow fuel retailers access to
Purchasers) with one or more fuel retailers. This may be particular
attractive to fuel retailers with relatively high pump prices (such
as premium gas stations or conveniently located retailers) in that
it allows for segmentation of customers and/or de facto price
discrimination. For example, in one embodiment, a gas station could
continue to charge a relatively high pump price to typical
customers, while also gaining access to the solicitation of
Purchasers. If the fuel retailer accepts the offer and associated
group mobility premium 2145, the Fuel Offering Generator adjusts
the fuel retailer's position within the price groups 2150. In one
embodiment the group mobility premium could be paid by the fuel
retailer to the Fuel Offering Generator (and/or associated
entities) as a one time and/or periodic fee. In another embodiment,
the group mobility premium could consist of and/or further include
a revenue and/or risk sharing agreement, with pricing adjustment
and/or payments from the fuel retailer to the Fuel Offering
Generator (and/or associated entities) and/or vice versa. In yet
another embodiment, said pricing adjustments and/or payments could
be made from the fuel retailer and/or Fuel Offering Generator
(and/or associated entities) to the Purchaser, as necessary. In
some embodiments, the group mobility premium and associated
arrangements may be used by the Fuel Offering Generator as an input
in determining a price matrix and/or in constructing an appropriate
hedging strategy.
Fuel Offering Generator System Controller
[0135] FIG. 22 of the present disclosure illustrates inventive
aspects of an Fuel Offering Generator controller 2201 in a block
diagram. In this embodiment, the Fuel Offering Generator controller
2201 may serve to aggregate, process, store, search, serve,
identify, instruct, generate, match, and/or facilitate comparative
interactions with information, and/or other related data.
[0136] Typically, users, which may be people and/or other systems,
engage information technology systems (e.g., commonly computers) to
facilitate information processing. In turn, computers employ
processors to process information; such processors are often
referred to as central processing units (CPU). A common form of
processor is referred to as a microprocessor. CPUs use
communicative signals to enable various operations. Such
communicative signals may be stored and/or transmitted in batches
as program and/or data components facilitate desired operations.
These stored instruction code signals may engage the CPU circuit
components to perform desired operations. A common type of program
is a computer operating system, which, commonly, is executed by CPU
on a computer; the operating system enables and facilitates users
to access and operate computer information technology and
resources. Common resources employed in information technology
systems include: input and output mechanisms through which data may
pass into and out of a computer; memory storage into which data may
be saved; and processors by which information may be processed.
Often information technology systems are used to collect data for
later retrieval, analysis, and manipulation, commonly, which is
facilitated through a database program. Information technology
systems provide interfaces that allow users to access and operate
various system components.
[0137] In one embodiment, the Fuel Offering Generator system
controller 2201 may be connected to and/or communicate with
entities such as, but not limited to: one or more users from user
input devices 2211; peripheral devices 2212; a cryptographic
processor device 2228; and/or a communications network 2213.
[0138] Networks are commonly thought to comprise the
interconnection and interoperation of clients, servers, and
intermediary nodes in a graph topology. It should be noted that the
term "server" as used throughout this disclosure refers generally
to a computer, other device, program, or combination thereof that
processes and responds to the requests of remote users across a
communications network. Servers serve their information to
requesting "clients." The term "client" as used herein refers
generally to a computer, other device, program, or combination
thereof that is capable of processing and making requests and
obtaining and processing any responses from servers across a
communications network. A computer, other device, program, or
combination thereof that facilitates, processes information and
requests, and/or furthers the passage of information from a source
user to a destination user is commonly referred to as a "node."
Networks are generally thought to facilitate the transfer of
information from source points to destinations. A node specifically
tasked with furthering the passage of information from a source to
a destination is commonly called a "router." There are many forms
of networks such as Local Area Networks (LANs), Pico networks, Wide
Area Networks (WANs), Wireless Networks (WLANs), etc. For example,
the Internet is generally accepted as being an interconnection of a
multitude of networks whereby remote clients and servers may access
and interoperate with one another.
[0139] The Fuel Offering Generator system controller 2201 may be
based on common computer systems that may comprise, but are not
limited to, components such as: a computer systemization 2202
connected to memory 2229.
[0140] Computer Systemization
[0141] A computer systemization 2202 may comprise a clock 2230,
central processing unit (CPU) 2203, a read only memory (ROM) 2206,
a random access memory (RAM) 2205, and/or an interface bus 2207,
and most frequently, although not necessarily, are all
interconnected and/or communicating through a system bus 2204.
Optionally, the computer systemization may be connected to an
internal power source 2286. Optionally, a cryptographic processor
2226 may be connected to the system bus. The system clock typically
has a crystal oscillator and provides a base signal. The clock is
typically coupled to the system bus and various clock multipliers
that will increase or decrease the base operating frequency for
other components interconnected in the computer systemization. The
clock and various components in a computer systemization drive
signals embodying information throughout the system. Such
transmission and reception of signals embodying information
throughout a computer systemization may be commonly referred to as
communications. These communicative signals may further be
transmitted, received, and the cause of return and/or reply signal
communications beyond the instant computer systemization to:
communications networks, input devices, other computer
systemizations, peripheral devices, and/or the like. Of course, any
of the above components may be connected directly to one another,
connected to the CPU, and/or organized in numerous variations
employed as exemplified by various computer systems.
[0142] The CPU comprises at least one high-speed data processor
adequate to execute program components for executing user and/or
system-generated requests. The CPU may be a microprocessor such as
AMD's Athlon, Duron and/or Opteron; IBM and/or Motorola's PowerPC;
IBM's and Sony's Cell processor; Intel's Celeron, Itanium, Pentium,
Xeon, and/or XScale; and/or the like processor(s). The CPU
interacts with memory through signal passing through conductive
conduits to execute stored signal program code according to
conventional data processing techniques. Such signal passing
facilitates communication within the Fuel Offering Generator system
controller and beyond through various interfaces. Should processing
requirements dictate a greater amount speed, parallel, mainframe
and/or super-computer architectures may similarly be employed.
Alternatively, should deployment requirements dictate greater
portability, smaller Personal Digital Assistants (PDAs) may be
employed.
[0143] Power Source
[0144] The power source 2286 may be of any standard form for
powering small electronic circuit board devices such as the
following power cells: alkaline, lithium hydride, lithium ion,
lithium polymer, nickel cadmium, solar cells, and/or the like.
Other types of AC or DC power sources may be used as well. In the
case of solar cells, in one embodiment, the case provides an
aperture through which the solar cell may capture photonic energy.
The power cell 2286 is connected to at least one of the
interconnected subsequent components of the Fuel Offering Generator
system thereby providing an electric current to all subsequent
components. In one example, the power source 2286 is connected to
the system bus component 2204. In an alternative embodiment, an
outside power source 2286 is provided through a connection across
the I/O 2208 interface. For example, a USB and/or IEEE 1394
connection carries both data and power across the connection and is
therefore a suitable source of power.
[0145] Interface Adapters
[0146] Interface bus(ses) 2207 may accept, connect, and/or
communicate to a number of interface adapters, conventionally
although not necessarily in the form of adapter cards, such as but
not limited to: input output interfaces (I/O) 2208, storage
interfaces 2209, network interfaces 2210, and/or the like.
Optionally, cryptographic processor interfaces 2227 similarly may
be connected to the interface bus. The interface bus provides for
the communications of interface adapters with one another as well
as with other components of the computer systemization. Interface
adapters are adapted for a compatible interface bus. Interface
adapters conventionally connect to the interface bus via a slot
architecture. Conventional slot architectures may be employed, such
as, but not limited to: Accelerated Graphics Port (AGP), Card Bus,
(Extended) Industry Standard Architecture ((E)ISA), Micro Channel
Architecture (MCA), NuBus, Peripheral Component Interconnect
(Extended) (PCI(X)), PCI Express, Personal Computer Memory Card
International Association (PCMCIA), and/or the like.
[0147] Storage interfaces 2209 may accept, communicate, and/or
connect to a number of storage devices such as, but not limited to:
storage devices 2214, removable disc devices, and/or the like.
Storage interfaces may employ connection protocols such as, but not
limited to: (Ultra) (Serial) Advanced Technology Attachment (Packet
Interface) ((Ultra) (Serial) ATA(PI)), (Enhanced) Integrated Drive
Electronics ((E)IDE), Institute of Electrical and Electronics
Engineers (IEEE) 1394, fiber channel, Small Computer Systems
Interface (SCSI), Universal Serial Bus (USB), and/or the like.
[0148] Network interfaces 2210 may accept, communicate, and/or
connect to a communications network 2213. Through a communications
network 113, the Fuel Offering Generator system controller is
accessible through remote clients 2233b (e.g., computers with web
browsers) by users 2233a. Network interfaces may employ connection
protocols such as, but not limited to: direct connect, Ethernet
(thick, thin, twisted pair 10/100/1000 Base T, and/or the like),
Token Ring, wireless connection such as IEEE 802.11a-x, and/or the
like. A communications network may be any one and/or the
combination of the following: a direct interconnection; the
Internet; a Local Area Network (LAN); a Metropolitan Area Network
(MAN); an Operating Missions as Nodes on the Internet (OMNI); a
secured custom connection; a Wide Area Network (WAN); a wireless
network (e.g., employing protocols such as, but not limited to a
Wireless Application Protocol (WAP), I-mode, and/or the like);
and/or the like. A network interface may be regarded as a
specialized form of an input output interface. Further, multiple
network interfaces 2210 may be used to engage with various
communications network types 2213. For example, multiple network
interfaces may be employed to allow for the communication over
broadcast, multicast, and/or unicast networks.
[0149] Input Output interfaces (I/O) 2208 may accept, communicate,
and/or connect to user input devices 2211, peripheral devices 2212,
cryptographic processor devices 2228, and/or the like. I/O may
employ connection protocols such as, but not limited to: Apple
Desktop Bus (ADB); Apple Desktop Connector (ADC); audio: analog,
digital, monaural, RCA, stereo, and/or the like; IEEE 1394a-b;
infrared; joystick; keyboard; midi; optical; PC AT; PS/2; parallel;
radio; serial; USB; video interface: BNC, coaxial, composite,
digital, Digital Visual Interface (DVI), RCA, RF antennae, S-Video,
VGA, and/or the like; wireless; and/or the like. A common output
device is a television set 145, which accepts signals from a video
interface. Also, a video display, which typically comprises a
Cathode Ray Tube (CRT) or Liquid Crystal Display (LCD) based
monitor with an interface (e.g., DVI circuitry and cable) that
accepts signals from a video interface, may be used. The video
interface composites information generated by a computer
systemization and generates video signals based on the composited
information in a video memory frame. Typically, the video interface
provides the composited video information through a video
connection interface that accepts a video display interface (e.g.,
an RCA composite video connector accepting an RCA composite video
cable; a DVI connector accepting a DVI display cable, etc.).
[0150] User input devices 2211 may be card readers, dongles, finger
print readers, gloves, graphics tablets, joysticks, keyboards,
mouse (mice), remote controls, retina readers, trackballs,
trackpads, and/or the like.
[0151] Peripheral devices 2212 may be connected and/or communicate
to I/O and/or other facilities of the like such as network
interfaces, storage interfaces, and/or the like. Peripheral devices
may be audio devices, cameras, dongles (e.g., for copy protection,
ensuring secure transactions with a digital signature, and/or the
like), external processors (for added functionality), goggles,
microphones, monitors, network interfaces, printers, scanners,
storage devices, video devices, video sources, visors, and/or the
like.
[0152] It should be noted that although user input devices and
peripheral devices may be employed, the Fuel Offering Generator
system controller may be embodied as an embedded, dedicated, and/or
monitor-less (i.e., headless) device, wherein access would be
provided over a network interface connection.
[0153] Cryptographic units such as, but not limited to,
microcontrollers, processors 2226, interfaces 2227, and/or devices
2228 may be attached, and/or communicate with the Fuel Offering
Generator system controller. A MC68HC16 microcontroller, commonly
manufactured by Motorola Inc., may be used for and/or within
cryptographic units. Equivalent microcontrollers and/or processors
may also be used. The MC68HC16 microcontroller utilizes a 16-bit
multiply-and-accumulate instruction in the 16 MHz configuration and
requires less than one second to perform a 512-bit RSA private key
operation. Cryptographic units support the authentication of
communications from interacting agents, as well as allowing for
anonymous transactions. Cryptographic units may also be configured
as part of CPU. Other commercially available specialized
cryptographic processors include VLSI Technology's 33 MHz 6868 or
Semaphore Communications' 40 MHz Roadrunner 184.
[0154] Memory
[0155] Generally, any mechanization and/or embodiment allowing a
processor to affect the storage and/or retrieval of information is
regarded as memory 2229. However, memory is a fungible technology
and resource, thus, any number of memory embodiments may be
employed in lieu of or in concert with one another. It is to be
understood that the Fuel Offering Generator system controller
and/or a computer systemization may employ various forms of memory
2229. For example, a computer systemization may be configured
wherein the functionality of on-chip CPU memory (e.g., registers),
RAM, ROM, and any other storage devices are provided by a paper
punch tape or paper punch card mechanism; of course such an
embodiment would result in an extremely slow rate of operation. In
a typical configuration, memory 2229 will include ROM 2206, RAM
2205, and a storage device 2214. A storage device 2214 may be any
conventional computer system storage. Storage devices may include a
drum; a (fixed and/or removable) magnetic disk drive; a
magneto-optical drive; an optical drive (i.e., CD
ROM/RAM/Recordable (R), ReWritable (RW), DVD R/RW, etc.); an array
of devices (e.g., Redundant Array of Independent Disks (RAID));
and/or other devices of the like. Thus, a computer systemization
generally requires and makes use of memory.
[0156] Component Collection
[0157] The memory 2229 may contain a collection of program and/or
database components and/or data such as, but not limited to:
operating system component(s) 2215 (operating system); information
server component(s) 2216 (information server); user interface
component(s) 2217 (user interface); Web browser component(s) 2218
(Web browser); database(s) 2219; mail server component(s) 2221;
mail client component(s) 2222; cryptographic server component(s)
2220 (cryptographic server); the Fuel Offering Generator system
component(s) 2235; and/or the like (i.e., collectively a component
collection). These components may be stored and accessed from the
storage devices and/or from storage devices accessible through an
interface bus. Although non-conventional program components such as
those in the component collection, typically, are stored in a local
storage device 2214, they may also be loaded and/or stored in
memory such as: peripheral devices, RAM, remote storage facilities
through a communications network, ROM, various forms of memory,
and/or the like.
[0158] Operating System
[0159] The operating system component 2215 is an executable program
component facilitating the operation of the Fuel Offering Generator
system controller. Typically, the operating system facilitates
access of I/O, network interfaces, peripheral devices, storage
devices, and/or the like. The operating system may be a highly
fault tolerant, scalable, and secure system such as Apple Macintosh
OS X (Server), AT&T Plan 9, Be OS, Linux, Unix, and/or the like
operating systems. However, more limited and/or less secure
operating systems also may be employed such as Apple Macintosh OS,
Microsoft DOS, Microsoft Windows
2000/2003/3.1/95/98/CE/Millenium/NTNista/XP (Server), Palm OS,
and/or the like. An operating system may communicate to and/or with
other components in a component collection, including itself,
and/or the like. Most frequently, the operating system communicates
with other program components, user interfaces, and/or the like.
For example, the operating system may contain, communicate,
generate, obtain, and/or provide program component, system, user,
and/or data communications, requests, and/or responses. The
operating system, once executed by the CPU, may enable the
interaction with communications networks, data, I/O, peripheral
devices, program components, memory, user input devices, and/or the
like. The operating system may provide communications protocols
that allow the Fuel Offering Generator system controller to
communicate with other entities through a communications network
2213. Various communication protocols may be used by the Fuel
Offering Generator system controller as a subcarrier transport
mechanism for interaction, such as, but not limited to: multicast,
TCP/IP, UDP, unicast, and/or the like.
[0160] Information Server
[0161] An information server component 2216 is a stored program
component that is executed by a CPU. The information server may be
a conventional Internet information server such as, but not limited
to Apache Software Foundation's Apache, Microsoft's Internet
Information Server, and/or the. The information server may allow
for the execution of program components through facilities such as
Active Server Page (ASP), ActiveX, (ANSI) (Objective-) C (++), C#,
Common Gateway Interface (CGI) scripts, Java, JavaScript, Practical
Extraction Report Language (PERL), Python, WebObjects, and/or the
like. The information server may support secure communications
protocols such as, but not limited to, File Transfer Protocol
(FTP); HyperText Transfer Protocol (HTTP); Secure Hypertext
Transfer Protocol (HTTPS), Secure Socket Layer (SSL), and/or the
like. The information server provides results in the form of Web
pages to Web browsers, and allows for the manipulated generation of
the Web pages through interaction with other program components.
After a Domain Name System (DNS) resolution portion of an HTTP
request is resolved to a particular information server, the
information server resolves requests for information at specified
locations on the Fuel Offering Generator system controller based on
the remainder of the HTTP request. For example, a request such as
http://123.124.125.126/myInformation.html might have the IP portion
of the request "123.124.125.126" resolved by a DNS server to an
information server at that IP address; that information server
might in turn further parse the http request for the
"/myInformation.html" portion of the request and resolve it to a
location in memory containing the information "myInformation.html."
Additionally, other information serving protocols may be employed
across various ports, e.g., FTP communications across port 21,
and/or the like. An information server may communicate to and/or
with other components in a component collection, including itself,
and/or facilities of the like. Most frequently, the information
server communicates with the Fuel Offering Generator system
database 2219, operating systems, other program components, user
interfaces, Web browsers, and/or the like.
[0162] Access to the Fuel Offering Generator system database may be
achieved through a number of database bridge mechanisms such as
through scripting languages as enumerated below (e.g., CGI) and
through inter-application communication channels as enumerated
below (e.g., CORBA, WebObjects, etc.). Any data requests through a
Web browser are parsed through the bridge mechanism into
appropriate grammars as required by the Fuel Offering Generator
system. In one embodiment, the information server would provide a
Web form accessible by a Web browser. Entries made into supplied
fields in the Web form are tagged as having been entered into the
particular fields, and parsed as such. The entered terms are then
passed along with the field tags, which act to instruct the parser
to generate queries directed to appropriate tables and/or fields.
In one embodiment, the parser may generate queries in standard SQL
by instantiating a search string with the proper join/select
commands based on the tagged text entries, wherein the resulting
command is provided over the bridge mechanism to the Fuel Offering
Generator system as a query. Upon generating query results from the
query, the results are passed over the bridge mechanism, and may be
parsed for formatting and generation of a new results Web page by
the bridge mechanism. Such a new results Web page is then provided
to the information server, which may supply it to the requesting
Web browser.
[0163] Also, an information server may contain, communicate,
generate, obtain, and/or provide program component, system, user,
and/or data communications, requests, and/or responses.
[0164] User Interface
[0165] The function of computer interfaces in some respects is
similar to automobile operation interfaces. Automobile operation
interface elements such as steering wheels, gearshifts, and
speedometers facilitate the access, operation, and display of
automobile resources, functionality, and status. Computer
interaction interface elements such as check boxes, cursors, menus,
scrollers, and windows (collectively and commonly referred to as
widgets) similarly facilitate the access, operation, and display of
data and computer hardware and operating system resources,
functionality, and status. Operation interfaces are commonly called
user interfaces. Graphical user interfaces (GUIs) such as the Apple
Macintosh Operating System's Aqua, Microsoft's Windows XP, or
Unix's X-Windows provide a baseline and means of accessing and
displaying information graphically to users.
[0166] A user interface component 2217 is a stored program
component that is executed by a CPU. The user interface may be a
conventional graphic user interface as provided by, with, and/or
atop operating systems and/or operating environments such as Apple
Macintosh OS, e.g., Aqua, GNUSTEP, Microsoft Windows (NT/XP), Unix
X Windows (KDE, Gnome, and/or the like), mythTV, and/or the like.
The user interface may allow for the display, execution,
interaction, manipulation, and/or operation of program components
and/or system facilities through textual and/or graphical
facilities. The user interface provides a facility through which
users may affect, interact, and/or operate a computer system. A
user interface may communicate to and/or with other components in a
component collection, including itself, and/or facilities of the
like. Most frequently, the user interface communicates with
operating systems, other program components, and/or the like. The
user interface may contain, communicate, generate, obtain, and/or
provide program component, system, user, and/or data
communications, requests, and/or responses.
[0167] Web Browser
[0168] A Web browser component 2218 is a stored program component
that is executed by a CPU. The Web browser may be a conventional
hypertext viewing application such as Microsoft Internet Explorer
or Netscape Navigator. Secure Web browsing may be supplied with 128
bit (or greater) encryption by way of HTTPS, SSL, and/or the like.
Some Web browsers allow for the execution of program components
through facilities such as Java, JavaScript, ActiveX, and/or the
like. Web browsers and like information access tools may be
integrated into PDAs, cellular telephones, and/or other mobile
devices. A Web browser may communicate to and/or with other
components in a component collection, including itself, and/or
facilities of the like. Most frequently, the Web browser
communicates with information servers, operating systems,
integrated program components (e.g., plug-ins), and/or the like;
e.g., it may contain, communicate, generate, obtain, and/or provide
program component, system, user, and/or data communications,
requests, and/or responses. Of course, in place of a Web browser
and information server, a combined application may be developed to
perform similar functions of both. The combined application would
similarly affect the obtaining and the provision of information to
users, user agents, and/or the like from the Fuel Offering
Generator system enabled nodes. The combined application may be
nugatory on systems employing standard Web browsers.
[0169] Mail Server
[0170] A mail server component 2221 is a stored program component
that is executed by a CPU 2203. The mail server may be a
conventional Internet mail server such as, but not limited to
sendmail, Microsoft Exchange, and/or the. The mail server may allow
for the execution of program components through facilities such as
ASP, ActiveX, (ANSI) (Objective-) C (++), CGI scripts, Java,
JavaScript, PERL, pipes, Python, WebObjects, and/or the like. The
mail server may support communications protocols such as, but not
limited to: Internet message access protocol (IMAP), Microsoft
Exchange, post office protocol (POP3), simple mail transfer
protocol (SMTP), and/or the like. The mail server can route,
forward, and process incoming and outgoing mail messages that have
been sent, relayed and/or otherwise traversing through and/or to
the Fuel Offering Generator system.
[0171] Access to the Fuel Offering Generator system mail may be
achieved through a number of APIs offered by the individual Web
server components and/or the operating system.
[0172] Also, a mail server may contain, communicate, generate,
obtain, and/or provide program component, system, user, and/or data
communications, requests, information, and/or responses.
[0173] Mail Client
[0174] A mail client component 2222 is a stored program component
that is executed by a CPU 2203. The mail client may be a
conventional mail viewing application such as Apple Mail, Microsoft
Entourage, Microsoft Outlook, Microsoft Outlook Express, Mozilla
Thunderbird, and/or the like. Mail clients may support a number of
transfer protocols, such as: IMAP, Microsoft Exchange, POP3, SMTP,
and/or the like. A mail client may communicate to and/or with other
components in a component collection, including itself, and/or
facilities of the like. Most frequently, the mail client
communicates with mail servers, operating systems, other mail
clients, and/or the like; e.g., it may contain, communicate,
generate, obtain, and/or provide program component, system, user,
and/or data communications, requests, information, and/or
responses. Generally, the mail client provides a facility to
compose and transmit electronic mail messages.
[0175] Cryptographic Server
[0176] A cryptographic server component 2220 is a stored program
component that is executed by a CPU 2203, cryptographic processor
2226, cryptographic processor interface 2227, cryptographic
processor device 2228, and/or the like. Cryptographic processor
interfaces will allow for expedition of encryption and/or
decryption requests by the cryptographic component; however, the
cryptographic component, alternatively, may run on a conventional
CPU. The cryptographic component allows for the encryption and/or
decryption of provided data. The cryptographic component allows for
both symmetric and asymmetric (e.g., Pretty Good Protection (PGP))
encryption and/or decryption. The cryptographic component may
employ cryptographic techniques such as, but not limited to:
digital certificates (e.g., X.509 authentication framework),
digital signatures, dual signatures, enveloping, password access
protection, public key management, and/or the like. The
cryptographic component will facilitate numerous (encryption and/or
decryption) security protocols such as, but not limited to:
checksum, Data Encryption Standard (DES), Elliptical Curve
Encryption (ECC), International Data Encryption Algorithm (IDEA),
Message Digest 5 (MD5, which is a one way hash function),
passwords, Rivest Cipher (RC5), Rijndael, RSA (which is an Internet
encryption and authentication system that uses an algorithm
developed in 1977 by Ron Rivest, Adi Shamir, and Leonard Adleman),
Secure Hash Algorithm (SHA), Secure Socket Layer (SSL), Secure
Hypertext Transfer Protocol (HTTPS), and/or the like. Employing
such encryption security protocols, the Fuel Offering Generator
system may encrypt all incoming and/or outgoing communications and
may serve as node within a virtual private network (VPN) with a
wider communications network. The cryptographic component
facilitates the process of "security authorization" whereby access
to a resource is inhibited by a security protocol wherein the
cryptographic component effects authorized access to the secured
resource. In addition, the cryptographic component may provide
unique identifiers of content, e.g., employing and MD5 hash to
obtain a unique signature for an digital audio file. A
cryptographic component may communicate to and/or with other
components in a component collection, including itself, and/or
facilities of the like. The cryptographic component supports
encryption schemes allowing for the secure transmission of
information across a communications network to enable the Fuel
Offering Generator system component to engage in secure
transactions if so desired. The cryptographic component facilitates
the secure accessing of resources on the Fuel Offering Generator
system and facilitates the access of secured resources on remote
systems; i.e., it may act as a client and/or server of secured
resources. Most frequently, the cryptographic component
communicates with information servers, operating systems, other
program components, and/or the like. The cryptographic component
may contain, communicate, generate, obtain, and/or provide program
component, system, user, and/or data communications, requests,
and/or responses.
[0177] The Fuel Offering Generator Database
[0178] The Fuel Offering Generator database component 2219 may be
embodied in a database and its stored data. The database is a
stored program component, which is executed by the CPU; the stored
program component portion configuring the CPU to process the stored
data. The database may be a conventional, fault tolerant,
relational, scalable, secure database such as Oracle or Sybase.
Relational databases are an extension of a flat file. Relational
databases consist of a series of related tables. The tables are
interconnected via a key field. Use of the key field allows the
combination of the tables by indexing against the key field; i.e.,
the key fields act as dimensional pivot points for combining
information from various tables. Relationships generally identify
links maintained between tables by matching primary keys. Primary
keys represent fields that uniquely identify the rows of a table in
a relational database. More precisely, they uniquely identify rows
of a table on the "one" side of a one-to-many relationship.
[0179] Alternatively, the Fuel Offering Generator database may be
implemented using various standard data-structures, such as an
array, hash, (linked) list, struct, structured text file (e.g.,
XML), table, and/or the like. Such data-structures may be stored in
memory and/or in (structured) files. In another alternative, an
object-oriented database may be used, such as Frontier,
ObjectStore, Poet, Zope, and/or the like. Object databases can
include a number of object collections that are grouped and/or
linked together by common attributes; they may be related to other
object collections by some common attributes. Object-oriented
databases perform similarly to relational databases with the
exception that objects are not just pieces of data but may have
other types of functionality encapsulated within a given object. If
the Fuel Offering Generator database is implemented as a
data-structure, the use of the Fuel Offering Generator database
2219 may be integrated into another component such as the Fuel
Offering Generator component 2235. Also, the database may be
implemented as a mix of data structures, objects, and relational
structures. Databases may be consolidated and/or distributed in
countless variations through standard data processing techniques.
Portions of databases, e.g., tables, may be exported and/or
imported and thus decentralized and/or integrated.
[0180] In one embodiment, the database component 2219 includes
several tables 2219a-i. A Purchaser table 2219a includes fields
such as, but not limited to: a user name, email address, address,
profile, user_id, and/or the like. A Provider table 2219b includes
fields such as, but not limited to: a Provider name, email address,
address, profile, Provider_id, and/or the like. A fuel vendor table
2219c includes fields such as, but not limited to: a fuel vendor
name, address, vendor_id, and/or the like. A Purchaser usage table
2219d includes fields such as, but not limited to: Purchaser_id,
Provider_id, Distributor_id, vendor_id, transaction_id, fuel used,
date, fuel purchase price, and/or the like. A market usage table
2219e includes fields such as, but not limited to: date, volume,
fuel price, and/or the like. A market price table 2219f includes
fields such as, but not limited to: financial instrument_id, price,
and/or the like. A Distributor table 2219g includes fields such as,
but not limited to: a Distributor name, email address, address,
profile, Distributor_id, and/or the like. A single price zone table
2219h includes fields such as, but not limited to: spz_id, region
zipcode, region bounding (longitude, latitude), region radius,
and/or the like. A variables table 2219i includes fields such as,
but not limited to: current fuel market variables, historical fuel
market variables, price matrices, consumer price matrices,
sensitivity data, Purchaser behavior data, and/or the like.
[0181] In one embodiment, the Fuel Offering Generator system
database may interact with other database systems. For example,
employing a distributed database system, queries and data access by
Fuel Offering Generator system component may treat the combination
of the Fuel Offering Generator system database, an integrated data
security layer database as a single database entity.
[0182] In one embodiment, user programs may contain various user
interface primitives, which may serve to update the Fuel Offering
Generator system. Also, various accounts may require custom
database tables depending upon the environments and the types of
clients the Fuel Offering Generator system may need to serve. It
should be noted that any unique fields may be designated as a key
field throughout. In an alternative embodiment, these tables have
been decentralized into their own databases and their respective
database controllers (i.e., individual database controllers for
each of the above tables). Employing standard data processing
techniques, one may further distribute the databases over several
computer systemizations and/or storage devices. Similarly,
configurations of the decentralized database controllers may be
varied by consolidating and/or distributing the various database
components 2219a-e. The Fuel Offering Generator system may be
configured to keep track of various settings, inputs, and
parameters via database controllers.
[0183] The Fuel Offering Generator system database may communicate
to and/or with other components in a component collection,
including itself, and/or facilities of the like. Most frequently,
the Fuel Offering Generator system database communicates with the
Fuel Offering Generator system component, other program components,
and/or the like. The database may contain, retain, and provide
information regarding other nodes and data.
[0184] The Fuel Offering Generator
[0185] The Fuel Offering Generator component 2235 is a stored
program component that is executed by a CPU. The Fuel Offering
Generator component affects accessing, obtaining and the provision
of information, services, transactions, and/or the like across
various communications networks. As such, the Fuel Offering
Generator component enables one to access, calculate, engage,
exchange, generate, identify, instruct, match, process, search,
serve, store, and/or facilitate transactions to promote fuel
offerings to customers. In one embodiment, the Fuel Offering
Generator component incorporates any and/or all combinations of the
aspects of the Fuel Offering Generator that were discussed in the
previous figures.
[0186] The Fuel Offering Generator system component enabling access
of information between nodes may be developed by employing standard
development tools such as, but not limited to: (ANSI) (Objective-)
C (++), Apache components, binary executables, database adapters,
Java, JavaScript, mapping tools, procedural and object oriented
development tools, PERL, Python, shell scripts, SQL commands, web
application server extensions, WebObjects, and/or the like. In one
embodiment, the Fuel Offering Generator system server employs a
cryptographic server to encrypt and decrypt communications. The
Fuel Offering Generator system component may communicate to and/or
with other components in a component collection, including itself,
and/or facilities of the like. Most frequently, the Fuel Offering
Generator system component communicates with the Fuel Offering
Generator system database, operating systems, other program
components, and/or the like. The Fuel Offering Generator system may
contain, communicate, generate, obtain, and/or provide program
component, system, user, and/or data communications, requests,
and/or responses.
[0187] Distributed Fuel Offering Generator System
[0188] The structure and/or operation of any of the Fuel Offering
Generator system node controller components may be combined,
consolidated, and/or distributed in any number of ways to
facilitate development and/or deployment. Similarly, the component
collection may be combined in any number of ways to facilitate
deployment and/or development. To accomplish this, one may
integrate the components into a common code base or in a facility
that can dynamically load the components on demand in an integrated
fashion.
[0189] The component collection may be consolidated and/or
distributed in countless variations through standard data
processing and/or development techniques. Multiple instances of any
one of the program components in the program component collection
may be instantiated on a single node, and/or across numerous nodes
to improve performance through load-balancing and/or
data-processing techniques. Furthermore, single instances may also
be distributed across multiple controllers and/or storage devices;
e.g., databases. All program component instances and controllers
working in concert may do so through standard data processing
communication techniques.
[0190] The configuration of the Fuel Offering Generator system
controller will depend on the context of system deployment. Factors
such as, but not limited to, the budget, capacity, location, and/or
use of the underlying hardware resources may affect deployment
requirements and configuration. Regardless of if the configuration
results in more consolidated and/or integrated program components,
results in a more distributed series of program components, and/or
results in some combination between a consolidated and distributed
configuration, data may be communicated, obtained, and/or provided.
Instances of components consolidated into a common code base from
the program component collection may communicate, obtain, and/or
provide data. This may be accomplished through intra-application
data processing communication techniques such as, but not limited
to: data referencing (e.g., pointers), internal messaging, object
instance variable communication, shared memory space, variable
passing, and/or the like.
[0191] If component collection components are discrete, separate,
and/or external to one another, then communicating, obtaining,
and/or providing data with and/or to other component components may
be accomplished through inter-application data processing
communication techniques such as, but not limited to: Application
Program Interfaces (API) information passage; (distributed)
Component Object Model ((D)COM), (Distributed) Object Linking and
Embedding ((D)OLE), and/or the like), Common Object Request Broker
Architecture (CORBA), process pipes, shared files, and/or the like.
Messages sent between discrete component components for
inter-application communication or within memory spaces of a
singular component for intra-application communication may be
facilitated through the creation and parsing of a grammar. A
grammar may be developed by using standard development tools such
as lex, yacc, XML, and/or the like, which allow for grammar
generation and parsing functionality, which in turn may form the
basis of communication messages within and between components.
Again, the configuration will depend upon the context of system
deployment.
[0192] Additional embodiments include:
[0193] 1. A processor-implemented method to generate fuel
offerings, comprising:
[0194] determining a strike price for a fuel offering;
[0195] determining a premium price associated with the strike price
for the fuel offering;
[0196] establishing restrictions for the associated strike price
and premium price for the fuel offering; and
[0197] providing the fuel offering for selection by a customer.
[0198] 2. The method of claim 1, further, comprising:
[0199] determining a service markup price associated with the
premium price for the fuel offering.
[0200] 3. The method of claim 1, further, comprising:
[0201] obtaining a customer order with a selected fuel offering
with specified parameters including a quantity of fuel and a
tenor.
[0202] 4. The method of claim 3, wherein the specified parameters
further include a type of fuel.
[0203] 5. The method of claim 3, further, comprising:
[0204] reimbursing a customer that exercises a customer fuel
offering order.
[0205] 6. The method of claim 5, further, comprising:
[0206] storing information regarding the customer's fuel offering
order exercise in a historical usage database.
[0207] 7. The method of claim 6, wherein the exercise information
includes a location where fuel was purchased.
[0208] 8. The method of claim 6, wherein the exercise information
includes a quantity of fuel that was purchased.
[0209] 9. The method of claim 3, further, comprising: reimbursing
the customer for fuel purchased having a price greater than the
strike price.
[0210] 10. The method of claim 9, wherein the customer
reimbursement is limited to the quantity specified in the customer
fuel offering order.
[0211] 11. The method of claim 3, wherein the specified parameters
further include a periodic usage limit.
[0212] 12. The method of claim 3, wherein the specified parameters
further include a geographic region.
[0213] 13. The method of claim 12, wherein the geographic region is
a single-price zone.
[0214] 14. The method of claim 3, further, comprising:
[0215] aggregating customer fuel offering orders.
[0216] 15. The method of claim 14, further, comprising:
[0217] executing a hedge for the aggregated fuel offering
orders.
[0218] 16. The method of claim 3, further, comprising:
[0219] executing a hedge for the fuel offering order.
[0220] 17. The method of claim 15, wherein the hedge employs a
forward contract.
[0221] 18. The method of claim 1, wherein the restrictions include
a usage cap.
[0222] 19. The method of claim 18, wherein the usage cap is a
periodic usage cap.
[0223] 20. The method of claim 19, wherein the periodic usage cap
is a monthly usage cap.
[0224] 21. The method of claim 18, wherein the periodic usage cap
specifies a maximum usage for a given period of time, wherein fuel
usage less than or equal to the specified maximum is eligible for
purchase at prices specified in the fuel offering.
[0225] 22. The method of claim 18, wherein the periodic usage cap
specifies a minimum usage amount for a given period of time,
wherein a number of units of fuel are no longer eligible for
purchase at prices specified in the fuel offering, wherein the
ineligible number is the difference between an actual number of
fuel units purchased at prices specified in the fuel offering and
the specified minimum usage amount.
[0226] 23. The method of claim 1, wherein the restrictions include
a price cap.
[0227] 24. The method of claim 23, wherein the price cap specifies
a maximum re-reimbursable fuel price, wherein fuel purchased that
is less than or equal to the specified maximum is eligible for
purchase at prices specified in the fuel offering.
[0228] 25. The method of claim 3, wherein the restrictions include
a structural constraint.
[0229] 26. The method of claim 25, wherein the structural
constraint specifies a maximum percentage of the quantity of fuel
specified in the customer fuel offering order that may be procured
at the strike price, wherein any fuel purchased in excess of the
maximum percentage will not be reimbursed.
[0230] 27. The method of claim 26, wherein any fuel purchased in
excess of the maximum percentage within a specified period will not
be reimbursed.
[0231] 28. The method of claim 27, wherein the specified period is
a month.
[0232] 29. The method of claim 3, further, comprising:
[0233] providing the customer with incentives to modify the
customer's behavior.
[0234] 30. The method of claim 29, wherein if a customer's fuel
purchasing behavior is determined to be undesirable, pricing
disincentives negatively affect the fuel offering provided to the
customer.
[0235] 31. The method of claim 30, wherein the pricing
disincentives will be put into effect when the customer has been
determined to be undesirable for a specified period of time.
[0236] 32. The method of claim 30, wherein the customer's fuel
purchasing behavior is undesirable when the customer tends to
purchase fuel at higher prices.
[0237] 33. The method of claim 30, the negative disincentives
increases the cost of the fuel offering.
[0238] 34. The method of claim 29, wherein if a customer's fuel
purchasing behavior is determined to be desirable, incentives are
offered to the customer.
[0239] 35. The method of claim 34, wherein the incentives decrease
the cost of the fuel offering.
[0240] 36. The method of claim 34, wherein the incentives award
points to the customer.
[0241] 37. The method of claim 34, wherein the incentives are
offered to the customer when the customer has been determined to be
desirable for a specified period of time.
[0242] 38. The method of claim 3, further, comprising:
[0243] providing a fuel vendor with incentives to modify
behavior.
[0244] 39. The method of claim 38, wherein if a customer's fuel
purchasing behavior is determined to be undesirable, pricing
disincentives negatively affect the fuel offering provided to the
customer.
[0245] 40. The method of claim 39, wherein the pricing
disincentives will be put into effect when the customer has been
determined to be undesirable for a specified period of time.
[0246] 41. The method of claim 39, wherein the customer's fuel
purchasing behavior is undesirable when the customer tends to
purchase fuel at higher prices.
[0247] 42. The method of claim 39, the negative disincentives
increases the cost of the fuel offering.
[0248] 43. The method of claim 38, wherein if a customer's fuel
purchasing behavior is determined to be desirable, incentives are
offered to the customer.
[0249] 44. The method of claim 43, wherein the incentives decrease
the cost of the fuel offering.
[0250] 45. The method of claim 43, wherein the incentives award
points to the customer.
[0251] 46. The method of claim 43, wherein the incentives are
offered to the customer when the customer has been determined to be
desirable for a specified period of time.
[0252] 47. The method of claim 3, further, comprising:
[0253] determining a sensitivity to price.
[0254] 48. The method of claim 47, wherein the price is the strike
price.
[0255] 49. The method of claim 47, wherein the price is the premium
price.
[0256] 50. The method of claim 47, wherein the price is a service
markup price.
[0257] 51. The method of claim 3, further, comprising:
[0258] aggregating customer fuel offering orders;
[0259] determining a sensitivity to price;
[0260] executing a hedge for the customer fuel offering order based
on the determined sensitivity to price.
[0261] 52. The method of claim 47, further, comprising:
[0262] executing a hedge for the customer fuel offering order based
on the determined sensitivity to price.
[0263] 53. The method of claim 3, wherein customer marketing
research are used to establish the fuel offering.
[0264] 54. The method of claim 3, wherein historical usage analysis
is used to establish the fuel offering.
[0265] 55. The method of claim 3, wherein market information is
used to establish the fuel offering.
[0266] 56. The method of claim 3, further, comprising:
[0267] querying a market information database for information to be
used as a factor in determining prices for the fuel offering.
[0268] 57. The method of claim 3, further, comprising:
[0269] querying a historical usage database for information to be
used as a factor in determining prices for the fuel offering.
[0270] 58. The method of claim 3, further, comprising:
[0271] querying a customer marketing database for information to be
used as a factor in determining prices for the fuel offering.
[0272] 59. The method of claim 3, wherein determination of a fuel
price further includes:
[0273] obtaining pricing input factors;
[0274] employing the pricing input factors in commodity volatility
model to generate a volatility solution;
[0275] determining the fuel price by using the volatility solution
as an input into a pricing simulation.
[0276] 60. The method of claim 59, wherein the fuel price is based
on an national average fuel price.
[0277] 61. The method of claim 59, wherein the fuel price is the
strike price.
[0278] 62. The method of claim 59, wherein the fuel price is the
premium price.
[0279] 63. The method of claim 59, wherein the fuel price is a
service markup price.
[0280] 64. The method of claim 59, wherein the commodity volatility
model is based on a stochastic differential equation.
[0281] 65. The method of claim 59, wherein the pricing simulation
is based on grid pricing.
[0282] 66. The method of claim 59, wherein the pricing simulation
is based on a Monte Carlo simulation.
[0283] 67. The method of claim 59, wherein pricing input factors
include fuel market information.
[0284] 68. The method of claim 67, wherein the fuel market
information may include any of: a wholesale gasoline
over-the-counter options market, wholesale gasoline
over-the-counter forward market and futures market, retail gasoline
spot prices.
[0285] 69. The method of claim 59, wherein the pricing input
factors include historical analysis.
[0286] 70. The method of claim 69, wherein the historical analysis
may include any of: wholesale gasoline over-the-counter options
market, wholesale gasoline over-the-counter forward market,
wholesale gasoline over-the-counter futures market, historical
retail gasoline spot prices, historical wholesale gasoline spot
prices, correlation between wholesale and retail gasoline
prices.
[0287] 71. The method of claim 59, wherein the pricing input
factors include observable parameters.
[0288] 72. The method of claim 71, wherein the observable
parameters may include any of: wholesale gasoline implied
volatilities, wholesale gasoline forward curve, spread of retail
spot price over wholesale spot price.
[0289] 73. The method of claim 59, wherein the pricing input
factors include non-observable parameters.
[0290] 74. The method of claim 73, wherein the non-observable
parameters may include any of: retail gasoline implied
volatilities, wholesale gasoline mean reversion parameters, retail
gasoline mean reversion parameters, retail gasoline forward
curve.
[0291] 75. The method of claim 59, wherein the pricing input
factors include offering parameters.
[0292] 76. The method of claim 75, wherein the offering parameters
may include any of: strike price, tenor, constraints, incentives,
restrictions, fuel type, geographic location.
[0293] 77. The method of claim 59, wherein the pricing input
factors includes a geographic region.
[0294] 78. The method of claim 77, wherein the geographic region is
a single-price zone.
[0295] 79. The method of claim 77, wherein in determination of the
single-price zone further, includes:
[0296] generating a single-price-zone map;
[0297] creating multiple single-price-zone pricing structures;
[0298] managing purchasers with the multiple single-price-zone
structures.
[0299] 80. The method of claim 59, wherein the fuel price is based
on fuel pump prices.
[0300] 81. The method of claim 80, wherein the pricing input
factors include a bias for a geographic region.
[0301] 82. The method of claim 81, wherein the pricing the bias for
the region is based on historical fuel pump price distribution.
[0302] 83. The method of claim 81, wherein the pricing the bias for
the region is based on historical purchaser bias price
distribution.
[0303] 84. The method of claim 81, wherein the geographic region is
a single-price zone.
[0304] 85. The method of claim 84, wherein the pricing input
factors include a volatility of the bias.
[0305] 86. The method of claim 84, wherein the pricing input
factors include a convexity of the bias.
[0306] 87. The method of claim 84, wherein the pricing input
factors include a no-arbitrage condition.
[0307] 88. A processor-implemented method to provide commodity
offerings, comprising:
[0308] setting at least one commodity offering terms for a
commodity offering;
[0309] determining at least one commodity offering pricing value
based on the at least one commodity offering terms and at least one
commodity offering pricing model for the commodity offering;
[0310] providing the commodity offering, including at least one
association based on the commodity offering pricing values between
a strike price and a premium, for selection by a customer; and
[0311] providing payment for some portion of a commodity purchase
for an exercised commodity offering, wherein the strike price of
the commodity offering is less than a geographically averaged
commodity price.
[0312] 89. The method of claim 88, wherein the commodity is a
fuel.
[0313] 90. The method of claim 89, wherein the fuel is a vehicle
fuel.
[0314] 91. The method of claim 89, wherein the fuel is a heating
fuel.
[0315] 92. The method of claim 88, wherein the geographically
averaged commodity price is a regional average commodity price.
[0316] 93. The method of claim 88, wherein the geographically
averaged commodity price is a national average commodity price.
[0317] 94. The method of claim 88, wherein the geographically
averaged commodity price is a multi-national average commodity
price.
[0318] 95. The method of claim 88, wherein the strike price is
pre-selected and the premium is determined based at least in part
on the strike price.
[0319] 96. The method of claim 88, wherein the premium is
pre-selected and the strike price is determined based at least in
part on the premium.
[0320] 97. The method of claim 88, wherein the commodity offering
pricing model includes at least one commodity market variable.
[0321] 98. The method of claim 97, wherein the at least one
commodity market variable is a geographically averaged commodity
price.
[0322] 99. The method of claim 97, wherein the at least one
commodity market variable includes any of: wholesale gasoline
over-the-counter options market data, wholesale gasoline
over-the-counter forward market and futures market data, retail
gasoline spot prices, wholesale gasoline implied volatilities,
wholesale gasoline forward curve, spread of retail spot price over
wholesale spot price.
[0323] 100. The method of claim 88, further comprising:
[0324] determining whether the at least one association based on
the commodity offering pricing values between a strike price and a
premium is satisfactory.
[0325] 101. The method of claim 100, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a market information
database for information to be used as a factor in determining
whether said association is satisfactory.
[0326] 102. The method of claim 100, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a customer marketing
database for information to be used as a factor in determining
whether said association is satisfactory.
[0327] 103. The method of claim 102, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0328] 104. The method of claim 102, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0329] 105. The method of claim 100, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a historical usage
database for information to be used as a factor in determining
whether said association is satisfactory.
[0330] 106. The method of claim 105, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0331] 107. The method of claim 105, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0332] 108. The method of claim 88, wherein the commodity offering
term parameters may include any of: strike price, premium, tenor,
constraints, incentives, restrictions, commodity type.
[0333] 109. The method of claim 88, wherein the commodity offering
pricing model comprises a commodity volatility model described by a
stochastic differential equation.
[0334] 110. The method of claim 109, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a Monte Carlo simulation.
[0335] 111. The method of claim 109, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a grid-pricing scheme.
[0336] 112. The method of claim 109, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in at least one analytic formula.
[0337] 113. The method of claim 88, wherein the setting at least
one commodity offering terms is based on a customer
specification.
[0338] 114. The method of claim 113, wherein the customer
specification includes a strike price.
[0339] 115. The method of claim 113, wherein the customer
specification includes a premium.
[0340] 116. The method of claim 113, wherein the customer
specification includes a tenor.
[0341] 117. The method of claim 113, wherein the customer
specification includes a commodity type.
[0342] 118. The method of claim 88, wherein the selection by a
customer comprises customer payment of a premium and a strike price
for a specified commodity quantity.
[0343] 119. The method of claim 118, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a commodity retailer for the commodity
purchase on which the commodity offering has been exercised.
[0344] 120. The method of claim 88, wherein the selection by a
customer comprises customer payment of a premium but not a strike
price for a specified commodity quantity.
[0345] 121. The method of claim 120, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a customer based on a commodity purchase
size and a difference between the strike price and the
geographically averaged price.
[0346] 122. The method of claim 88, wherein the payment for some
portion of a commodity purchase for an exercised commodity offering
is limited to a total commodity quantity specified by the commodity
offering terms.
[0347] 123. The method of claim 88, further comprising:
[0348] recording customer selection of commodity offerings in a
customer selection database; and
[0349] executing a hedge based on entries in the customer selection
database.
[0350] 124. The method of claim 123, further comprising:
[0351] aggregating entries in the customer selection database into
at least one similarity class prior to executing a hedge; and
[0352] executing a hedge based on similarity classes.
[0353] 125. The method of claim 124, wherein aggregating entries is
based on commodity offering terms.
[0354] 126. The method of claim 124, wherein aggregating entries is
based on commodity offering pricing.
[0355] 127. The method of claim 124, wherein aggregating entries is
based on customer characteristics.
[0356] 128. The method of claim 124, wherein aggregating entries is
based on risk considerations.
[0357] 129. The method of claim 123, wherein the hedge includes the
purchase of at least one forward contract.
[0358] 130. The method of claim 88, further comprising:
[0359] monitoring customer exercising of a commodity offering;
and
[0360] recording customer exercising of a commodity offering in a
customer profile database.
[0361] 131. The method of claim 130, further comprising:
[0362] associating at least one commodity offering purchase
incentive with the customer profile based on accumulated records of
customer exercising of a commodity offering.
[0363] 132. The method of claim 130, further comprising:
[0364] associating at least one commodity offering purchase
disincentive with the customer profile based on accumulated records
of customer exercising of a commodity offering.
[0365] 133. The method of claim 88, wherein the commodity pricing
model is configured to output at least one price sensitivity
value.
[0366] 134. The method of claim 133, further comprising:
[0367] executing a hedge based at least in part on the at least one
price sensitivity value.
[0368] 135. The method of claim 134, further comprising:
[0369] analyzing the hedge based on a set of risk mitigation
criteria; and
[0370] modifying the commodity pricing model based on the
analysis.
[0371] 136. A processor-implemented method to provide commodity
offerings, comprising:
[0372] setting at least one commodity offering terms for a
commodity offering;
[0373] setting at least one commodity offering exercise
restrictions for a commodity offering;
[0374] determining at least one commodity offering pricing value
based on the at least one commodity offering terms and at least one
commodity offering pricing model for the commodity offering;
[0375] providing the commodity offering, including at least one
association based on the commodity offering pricing values between
a strike price and a premium, for selection by a customer; and
[0376] providing payment for some portion of a commodity purchase
for an exercised commodity offering subject to the at least one
commodity offering exercise restrictions, wherein the strike price
of the commodity offering is less than a geographically averaged
commodity price.
[0377] 137. The method of claim 136, wherein the commodity is a
fuel.
[0378] 138. The method of claim 137, wherein the fuel is a vehicle
fuel.
[0379] 139. The method of claim 137, wherein the fuel is a heating
fuel.
[0380] 140. The method of claim 136, wherein the geographically
averaged commodity price is a regional average commodity price.
[0381] 141. The method of claim 136, wherein the geographically
averaged commodity price is a national average commodity price.
[0382] 142. The method of claim 136, wherein the geographically
averaged commodity price is a multi-national average commodity
price.
[0383] 143. The method of claim 136, wherein the strike price is
pre-selected and the premium is determined based at least in part
on the strike price.
[0384] 144. The method of claim 136, wherein the premium is
pre-selected and the strike price is determined based at least in
part on the premium.
[0385] 145. The method of claim 136, wherein the commodity offering
pricing model includes at least one commodity market variable.
[0386] 146. The method of claim 145, wherein the at least one
commodity market variable is a geographically averaged commodity
price.
[0387] 147. The method of claim 145, wherein the at least one
commodity market variable includes any of: wholesale gasoline
over-the-counter options market data, wholesale gasoline
over-the-counter forward market and futures market data, retail
gasoline spot prices, wholesale gasoline implied volatilities,
wholesale gasoline forward curve, spread of retail spot price over
wholesale spot price.
[0388] 148. The method of claim 136, further comprising:
[0389] determining whether the at least one association based on
the commodity offering pricing values between a strike price and a
premium is satisfactory.
[0390] 149. The method of claim 148, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a market information
database for information to be used as a factor in determining
whether said association is satisfactory.
[0391] 150. The method of claim 148, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a customer marketing
database for information to be used as a factor in determining
whether said association is satisfactory.
[0392] 151. The method of claim 150, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0393] 152. The method of claim 150, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0394] 153. The method of claim 148, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a historical usage
database for information to be used as a factor in determining
whether said association is satisfactory.
[0395] 154. The method of claim 153, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0396] 155. The method of claim 153, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0397] 156. The method of claim 136, wherein the commodity offering
term parameters may include any of: strike price, premium, tenor,
constraints, incentives, restrictions, commodity type.
[0398] 157. The method of claim 136, wherein the commodity offering
pricing model comprises a commodity volatility model described by a
stochastic differential equation.
[0399] 158. The method of claim 157, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a Monte Carlo simulation.
[0400] 159. The method of claim 157, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a grid-pricing scheme.
[0401] 160. The method of claim 157, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in at least one analytic formula.
[0402] 161. The method of claim 136, wherein the setting at least
one commodity offering terms is based on a customer
specification.
[0403] 162. The method of claim 161, wherein the customer
specification includes a strike price.
[0404] 163. The method of claim 161, wherein the customer
specification includes a premium.
[0405] 164. The method of claim 161, wherein the customer
specification includes a tenor.
[0406] 165. The method of claim 161, wherein the customer
specification includes a commodity type.
[0407] 166. The method of claim 136, wherein the selection by a
customer comprises customer payment of a premium and a strike price
for a specified commodity quantity.
[0408] 167. The method of claim 166, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a commodity retailer for the commodity
purchase on which the commodity offering has been exercised.
[0409] 168. The method of claim 136, wherein the selection by a
customer comprises customer payment of a premium but not a strike
price for a specified commodity quantity.
[0410] 169. The method of claim 168, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a customer based on a commodity purchase
size and a difference between the strike price and the
geographically averaged price.
[0411] 170. The method of claim 136, wherein the payment for some
portion of a commodity purchase for an exercised commodity offering
is limited to a total commodity quantity specified by the commodity
offering terms.
[0412] 171. The method of claim 136, further comprising:
[0413] recording customer selection of commodity offerings in a
customer selection database; and
[0414] executing a hedge based on entries in the customer selection
database.
[0415] 172. The method of claim 171, further comprising:
[0416] aggregating entries in the customer selection database into
at least one similarity class prior to executing a hedge; and
[0417] executing a hedge based on similarity classes.
[0418] 173. The method of claim 172, wherein aggregating entries is
based on commodity offering terms.
[0419] 174. The method of claim 172, wherein aggregating entries is
based on commodity offering pricing.
[0420] 175. The method of claim 172, wherein aggregating entries is
based on customer characteristics.
[0421] 176. The method of claim 172, wherein aggregating entries is
based on risk considerations.
[0422] 177. The method of claim 171, wherein the hedge includes the
purchase of at least one forward contract.
[0423] 178. The method of claim 136, further comprising:
[0424] monitoring customer exercising of a commodity offering;
and
[0425] recording customer exercising of a commodity offering in a
customer profile database.
[0426] 179. The method of claim 178, further comprising:
[0427] associating at least one commodity offering purchase
incentive with the customer profile based on accumulated records of
customer exercising of a commodity offering.
[0428] 180. The method of claim 178, further comprising:
[0429] associating at least one commodity offering purchase
disincentive with the customer profile based on accumulated records
of customer exercising of a commodity offering.
[0430] 181. The method of claim 136, wherein the commodity pricing
model is configured to output at least one price sensitivity
value.
[0431] 182. The method of claim 181, further comprising: executing
a hedge based at least in part on the at least one price
sensitivity value.
[0432] 183. The method of claim 136, wherein the at least one
commodity offering exercise restrictions comprise:
[0433] a periodic usage restriction having a specified period.
[0434] 184. The method of claim 183, wherein the specified period
is a month.
[0435] 185. The method of claim 183, wherein the specified period
is a year.
[0436] 186. The method of claim 183, wherein the specified period
is a fiscal quarter.
[0437] 187. The method of claim 183, wherein the periodic usage
restriction having a specified period is configured to allow a
different usage restriction for each period.
[0438] 188. The method of claim 183, wherein the periodic usage
restriction monotonically decreases with the passage of each
successive period.
[0439] 189. The method of claim 183, wherein the periodic usage
restriction monotonically increases with the passage of each
successive period.
[0440] 190. The method of claim 183, wherein the periodic usage
restriction comprises commodity offering term specifying a maximum
allowed usage per period.
[0441] 191. The method of claim 183, wherein the periodic usage
restriction comprises commodity offering term specifying a fixed
allowed usage per period.
[0442] 192. The method of claim 136, wherein the at least one
commodity offering usage restrictions comprise:
[0443] a maximum redemption restriction;
[0444] 193. The method of claim 192, wherein the maximum redemption
restriction comprises a commodity offering term specifying a
limiting commodity price, wherein exercising the commodity offering
on a quantity of commodity with a retail price that is higher than
the limiting commodity price yields a redemption based on the
limiting commodity price and not the retail price.
[0445] 194. The method of claim 192, wherein the maximum redemption
restriction comprises a commodity offering term specifying a
limiting payout, wherein exercising the commodity offering on a
quantity of commodity with a retail price higher than the sum of
the strike price and the limiting payout yields a redemption based
on the limiting payout and not the difference of the retail price
and strike price.
[0446] 195. A processor-implemented method to provide commodity
offerings, comprising:
[0447] setting at least one commodity offering terms for a
commodity offering;
[0448] determining at least one commodity offering pricing value
based on the at least one commodity offering terms and at least one
commodity offering pricing model for the commodity offering;
[0449] providing the commodity offering, including at least one
association based on the commodity offering pricing values between
a strike price and a premium, for selection by a customer;
[0450] providing payment for some portion of a commodity purchase
for an exercised commodity offering, wherein the strike price of
the commodity offering is less than a geographically averaged
commodity price;
[0451] recording selection and exercise of commodity offerings in a
customer behavior database; and
[0452] modifying the at least one commodity offering pricing model
based on the customer behavior database.
[0453] 196. The method of claim 195, wherein the commodity is a
fuel.
[0454] 197. The method of claim 196, wherein the fuel is a vehicle
fuel.
[0455] 198. The method of claim 196, wherein the fuel is a heating
fuel.
[0456] 199. The method of claim 195, wherein the geographically
averaged commodity price is a regional average commodity price.
[0457] 200. The method of claim 195, wherein the geographically
averaged commodity price is a national average commodity price.
[0458] 201. The method of claim 195, wherein the geographically
averaged commodity price is a multi-national average commodity
price.
[0459] 202. The method of claim 195, wherein the strike price is
pre-selected and the premium is determined based at least in part
on the strike price.
[0460] 203. The method of claim 195, wherein the premium is
pre-selected and the strike price is determined based at least in
part on the premium.
[0461] 204. The method of claim 195, wherein the commodity offering
pricing model includes at least one commodity market variable.
[0462] 205. The method of claim 204, wherein the at least one
commodity market variable is a geographically averaged commodity
price.
[0463] 206. The method of claim 204, wherein the at least one
commodity market variable includes any of: wholesale gasoline
over-the-counter options market data, wholesale gasoline
over-the-counter forward market and futures market data, retail
gasoline spot prices, wholesale gasoline implied volatilities,
wholesale gasoline forward curve, spread of retail spot price over
wholesale spot price.
[0464] 207. The method of claim 195, further comprising:
[0465] determining whether the at least one association based on
the commodity offering pricing values between a strike price and a
premium is satisfactory.
[0466] 208. The method of claim 207, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a market information
database for information to be used as a factor in determining
whether said association is satisfactory.
[0467] 209. The method of claim 207, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a customer marketing
database for information to be used as a factor in determining
whether said association is satisfactory.
[0468] 210. The method of claim 209, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0469] 211. The method of claim 209, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0470] 212. The method of claim 207, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a historical usage
database for information to be used as a factor in determining
whether said association is satisfactory.
[0471] 213. The method of claim 212, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0472] 214. The method of claim 212, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0473] 215. The method of claim 195, wherein the commodity offering
term parameters may include any of: strike price, premium, tenor,
constraints, incentives, restrictions, commodity type.
[0474] 216. The method of claim 195, wherein the commodity offering
pricing model comprises a commodity volatility model described by a
stochastic differential equation.
[0475] 217. The method of claim 216, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a Monte Carlo simulation.
[0476] 218. The method of claim 216, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a grid-pricing scheme.
[0477] 219. The method of claim 216, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in at least one analytic formula.
[0478] 220. The method of claim 195, wherein the setting at least
one commodity offering terms is based on a customer
specification.
[0479] 221. The method of claim 220, wherein the customer
specification includes a strike price.
[0480] 222. The method of claim 220, wherein the customer
specification includes a premium.
[0481] 223. The method of claim 220, wherein the customer
specification includes a tenor.
[0482] 224. The method of claim 220, wherein the customer
specification includes a commodity type.
[0483] 225. The method of claim 195, wherein the selection by a
customer comprises customer payment of a premium and a strike price
for a specified commodity quantity.
[0484] 226. The method of claim 225, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a commodity retailer for the commodity
purchase on which the commodity offering has been exercised.
[0485] 227. The method of claim 195, wherein the selection by a
customer comprises customer payment of a premium but not a strike
price for a specified commodity quantity.
[0486] 228. The method of claim 227, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a customer based on a commodity purchase
size and a difference between the strike price and the
geographically averaged price.
[0487] 229. The method of claim 195, further comprising:
[0488] storing commodity offering exercise information in a
historical usage database.
[0489] 230. The method of claim 229, wherein the commodity offering
exercise information includes a location where the commodity
offering was exercised.
[0490] 231. The method of claim 229, wherein the commodity offering
exercise information includes a commodity quantity on which the
commodity offering was exercised.
[0491] 232. The method of claim 195, wherein the payment for some
portion of a commodity purchase for an exercised commodity offering
is limited to a total commodity quantity specified by the commodity
offering terms.
[0492] 233. The method of claim 195, further comprising:
[0493] recording customer selection of commodity offerings in a
customer selection database; and executing a hedge based on entries
in the customer selection database.
[0494] 234. The method of claim 233, further comprising:
[0495] aggregating entries in the customer selection database into
at least one similarity class prior to executing a hedge; and
[0496] executing a hedge based on similarity classes.
[0497] 235. The method of claim 234, wherein aggregating entries is
based on commodity offering terms.
[0498] 236. The method of claim 234, wherein aggregating entries is
based on commodity offering pricing.
[0499] 237. The method of claim 234, wherein aggregating entries is
based on customer characteristics.
[0500] 238. The method of claim 234, wherein aggregating entries is
based on risk considerations.
[0501] 239. The method of claim 233, wherein the hedge includes the
purchase of at least one forward contract.
[0502] 240. The method of claim 195, further comprising:
[0503] monitoring customer exercising of a commodity offering;
and
[0504] recording customer exercising of a commodity offering in a
customer profile database.
[0505] 241. The method of claim 240, further comprising:
[0506] associating at least one commodity offering purchase
incentive with the customer profile based on accumulated records of
customer exercising of a commodity offering.
[0507] 242. The method of claim 240, further comprising:
[0508] associating at least one commodity offering purchase
disincentive with the customer profile based on accumulated records
of customer exercising of a commodity offering.
[0509] 243. The method of claim 195, wherein the commodity pricing
model is configured to output at least one price sensitivity
value.
[0510] 244. The method of claim 243, further comprising: executing
a hedge based at least in part on the at least one price
sensitivity value.
[0511] 245. The method of claim 244, further comprising:
[0512] analyzing the hedge based on a set of risk mitigation
criteria; and
[0513] modifying the commodity pricing model based on the
analysis.
[0514] 246. The method of claim 195, wherein modifying the at least
one commodity offering pricing model is based on a plurality of
aggregated records stored in the customer behavior database.
[0515] 247. The method of claim 246, wherein the plurality of
aggregated records are aggregated based on commodity offering
selection patterns.
[0516] 248. The method of claim 246, wherein the plurality of
aggregated records are aggregated based on commodity offering
exercise patterns.
[0517] 249. The method of claim 195, wherein the recording
selection and exercise of commodity offerings in a customer
behavior database comprises:
[0518] recording a location at which a commodity offering is
exercised.
[0519] 250. The method of claim 195, wherein the recording
selection and exercise of commodity offerings in a customer
behavior database comprises:
[0520] recording a time at which a commodity offering is
exercised.
[0521] 251. The method of claim 195, wherein the recording
selection and exercise of commodity offerings in a customer
behavior database comprises:
[0522] recording a commodity quantity on which a commodity offering
is exercised.
[0523] 252. A processor-implemented method to provide commodity
offerings, comprising:
[0524] setting at least one commodity offering terms for a
commodity offering;
[0525] determining at least one commodity offering pricing value
based on the at least one commodity offering terms and at least one
commodity offering pricing model for the commodity offering;
[0526] providing the commodity offering, including at least one
association based on the commodity offering pricing values between
a strike price and a premium, for selection by a customer; and
[0527] providing payment for some portion of a commodity purchase
for an exercised commodity offering, wherein the strike price of
the commodity offering is less than a local retail commodity
price.
[0528] 253. The method of claim 252, wherein the commodity is a
fuel.
[0529] 254. The method of claim 253, wherein the fuel is a vehicle
fuel.
[0530] 255. The method of claim 253, wherein the fuel is a heating
fuel.
[0531] 256. The method of claim 253, wherein the local retail
commodity price is a fuel pump price.
[0532] 257. The method of claim 257, wherein fuel pump price is
paid by the customer.
[0533] 258. The method of claim 252, wherein the local retail
commodity price is a commodity price charged by a retail commodity
dealer at which the commodity offering is exercised.
[0534] 259. The method of claim 252, wherein the strike price is
pre-selected and the premium is determined based at least in part
on the strike price.
[0535] 260. The method of claim 252, wherein the premium is
pre-selected and the strike price is determined based at least in
part on the premium.
[0536] 261. The method of claim 252, wherein the commodity offering
pricing model includes at least one commodity market variable.
[0537] 262. The method of claim 261, wherein the at least one
commodity market variable comprises at least one local retail
commodity price.
[0538] 263. The method of claim 261, wherein the at least one
commodity market variable includes any of: wholesale gasoline
over-the-counter options market data, wholesale gasoline
over-the-counter forward market and futures market data, retail
gasoline spot prices, wholesale gasoline implied volatilities,
wholesale gasoline forward curve, spread of retail spot price over
wholesale spot price.
[0539] 264. The method of claim 252, further comprising:
[0540] determining whether the at least one association based on
the commodity offering pricing values between a strike price and a
premium is satisfactory.
[0541] 265. The method of claim 264, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a market information
database for information to be used as a factor in determining
whether said association is satisfactory.
[0542] 266. The method of claim 264, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a customer marketing
database for information to be used as a factor in determining
whether said association is satisfactory.
[0543] 267. The method of claim 266, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0544] 268. The method of claim 266, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0545] 269. The method of claim 264, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a historical usage
database for information to be used as a factor in determining
whether said association is satisfactory.
[0546] 270. The method of claim 269, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0547] 271. The method of claim 269, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0548] 272. The method of claim 252, wherein the commodity offering
term parameters may include any of: strike price, premium, tenor,
constraints, incentives, restrictions, commodity type.
[0549] 273. The method of claim 252, wherein the commodity offering
pricing model comprises a commodity volatility model described by a
stochastic differential equation.
[0550] 274. The method of claim 273, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a Monte Carlo simulation.
[0551] 275. The method of claim 273, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a grid-pricing scheme.
[0552] 276. The method of claim 273, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in at least one analytic formula.
[0553] 277. The method of claim 252, wherein the setting at least
one commodity offering terms is based on a customer
specification.
[0554] 278. The method of claim 277, wherein the customer
specification includes a strike price.
[0555] 279. The method of claim 277, wherein the customer
specification includes a premium.
[0556] 280. The method of claim 277, wherein the customer
specification includes a tenor.
[0557] 281. The method of claim 277, wherein the customer
specification includes a commodity type.
[0558] 282. The method of claim 277, wherein the customer
specification includes at least one geographic zone.
[0559] 283. The method of claim 282, wherein the customer
specification includes at least one primary geographic zone.
[0560] 284. The method of claim 283, wherein the customer
specification includes at least one peripheral geographic zone.
[0561] 285. The method of claim 252, wherein the selection by a
customer comprises customer payment of a premium and a strike price
for a specified commodity quantity.
[0562] 286. The method of claim 285, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a commodity retailer for the commodity
purchase on which the commodity offering has been exercised.
[0563] 287. The method of claim 252, wherein the selection by a
customer comprises customer payment of a premium but not a strike
price for a specified commodity quantity.
[0564] 288. The method of claim 287, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a customer based on a commodity purchase
size and a difference between the strike price and the local retail
commodity price.
[0565] 289. The method of claim 252, wherein the payment for some
portion of a commodity purchase for an exercised commodity offering
is limited to a total commodity quantity specified by the commodity
offering terms.
[0566] 290. The method of claim 252, further comprising:
[0567] recording customer selection of commodity offerings in a
customer selection database; and
[0568] executing a hedge based on entries in the customer selection
database.
[0569] 291. The method of claim 290, further comprising:
[0570] aggregating entries in the customer selection database into
at least one similarity class prior to executing a hedge; and
[0571] executing a hedge based on similarity classes.
[0572] 292. The method of claim 291, wherein aggregating entries is
based on commodity offering terms.
[0573] 293. The method of claim 291, wherein aggregating entries is
based on commodity offering pricing.
[0574] 294. The method of claim 291, wherein aggregating entries is
based on customer characteristics.
[0575] 295. The method of claim 291, wherein aggregating entries is
based on risk considerations.
[0576] 296. The method of claim 290, wherein the hedge includes the
purchase of at least one forward contract.
[0577] 297. The method of claim 252, further comprising:
[0578] monitoring customer exercising of a commodity offering;
and
[0579] recording customer exercising of a commodity offering in a
customer profile database.
[0580] 298. The method of claim 297, further comprising:
[0581] associating at least one commodity offering purchase
incentive with the customer profile based on accumulated records of
customer exercising of a commodity offering.
[0582] 299. The method of claim 297, further comprising:
[0583] associating at least one commodity offering purchase
disincentive with the customer profile based on accumulated records
of customer exercising of a commodity offering.
[0584] 300. The method of claim 252, wherein the commodity pricing
model is configured to output at least one price sensitivity
value.
[0585] 301. The method of claim 300, further comprising:
[0586] executing a hedge based at least in part on the at least one
price sensitivity value.
[0587] 302. A processor-implemented method to provide commodity
offerings, comprising:
[0588] setting at least one commodity offering terms for a
commodity offering, including at least one geographic zone
specification;
[0589] determining at least one commodity offering pricing value
based on the at least one commodity offering terms and at least one
commodity offering pricing model for the commodity offering;
[0590] providing the commodity offering, including at least one
association based on the commodity offering pricing values between
a strike price and a premium, for selection by a customer;
[0591] monitoring the location at which a commodity offering is
exercised; and
[0592] providing payment for some portion of a commodity purchase
for the exercised commodity offering based on the location of the
exercised commodity offering and the at least one geographic zone
specification, wherein the strike price of the commodity offering
is less than a local retail commodity price.
[0593] 303. The method of claim 302, wherein the commodity is a
fuel.
[0594] 304. The method of claim 303, wherein the fuel is a vehicle
fuel.
[0595] 305. The method of claim 303, wherein the fuel is a heating
fuel.
[0596] 306. The method of claim 303, wherein the local retail
commodity price is a fuel pump price.
[0597] 307. The method of claim 307, wherein fuel pump price is
paid by the customer.
[0598] 308. The method of claim 302, wherein the local retail
commodity price is a commodity price charged by a retail commodity
dealer at which the commodity offering is exercised.
[0599] 309. The method of claim 302, wherein the strike price is
pre-selected and the premium is determined based at least in part
on the strike price.
[0600] 310. The method of claim 302, wherein the premium is
pre-selected and the strike price is determined based at least in
part on the premium.
[0601] 311. The method of claim 302, wherein the commodity offering
pricing model includes at least one commodity market variable.
[0602] 312. The method of claim 311, wherein the at least one
commodity market variable comprises at least one local retail
commodity price.
[0603] 313. The method of claim 311, wherein the at least one
commodity market variable includes any of: wholesale gasoline
over-the-counter options market data, wholesale gasoline
over-the-counter forward market and futures market data, retail
gasoline spot prices, wholesale gasoline implied volatilities,
wholesale gasoline forward curve, spread of retail spot price over
wholesale spot price.
[0604] 314. The method of claim 302, further comprising:
[0605] determining whether the at least one association based on
the commodity offering pricing values between a strike price and a
premium is satisfactory.
[0606] 315. The method of claim 314, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a market information
database for information to be used as a factor in determining
whether said association is satisfactory.
[0607] 316. The method of claim 314, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a customer marketing
database for information to be used as a factor in determining
whether said association is satisfactory.
[0608] 317. The method of claim 316, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0609] 318. The method of claim 316, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0610] 319. The method of claim 314, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a historical usage
database for information to be used as a factor in determining
whether said association is satisfactory.
[0611] 320. The method of claim 319, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0612] 321. The method of claim 319, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0613] 322. The method of claim 302, wherein the commodity offering
term parameters may include any of: strike price, premium, tenor,
constraints, incentives, restrictions, commodity type.
[0614] 323. The method of claim 302, wherein the commodity offering
pricing model comprises a commodity volatility model described by a
stochastic differential equation.
[0615] 324. The method of claim 323, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a Monte Carlo simulation.
[0616] 325. The method of claim 323, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a grid-pricing scheme.
[0617] 326. The method of claim 323, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in at least one analytic formula.
[0618] 327. The method of claim 302, wherein the setting at least
one commodity offering terms is based on a customer
specification.
[0619] 328. The method of claim 327, wherein the customer
specification includes a strike price.
[0620] 329. The method of claim 327, wherein the customer
specification includes a premium.
[0621] 330. The method of claim 327, wherein the customer
specification includes a tenor.
[0622] 331. The method of claim 327, wherein the customer
specification includes a commodity type.
[0623] 332. The method of claim 327, wherein the customer
specification includes at least one geographic zone.
[0624] 333. The method of claim 332, wherein the customer
specification includes at least one primary geographic zone.
[0625] 334. The method of claim 333, wherein the customer
specification includes at least one peripheral geographic zone.
[0626] 335. The method of claim 302, wherein the selection by a
customer comprises customer payment of a premium and a strike price
for a specified commodity quantity.
[0627] 336. The method of claim 335, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a commodity retailer for the commodity
purchase on which the commodity offering has been exercised.
[0628] 337. The method of claim 302, wherein the selection by a
customer comprises customer payment of a premium but not a strike
price for a specified commodity quantity.
[0629] 338. The method of claim 337, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a customer based on a commodity purchase
size and a difference between the strike price and the local retail
commodity price.
[0630] 339. The method of claim 302, wherein the payment for some
portion of a commodity purchase for an exercised commodity offering
is limited to a total commodity quantity specified by the commodity
offering terms.
[0631] 340. The method of claim 302, further comprising:
[0632] recording customer selection of commodity offerings in a
customer selection database; and
[0633] executing a hedge based on entries in the customer selection
database.
[0634] 341. The method of claim 340, further comprising:
[0635] aggregating entries in the customer selection database into
at least one similarity class prior to executing a hedge; and
[0636] executing a hedge based on similarity classes.
[0637] 342. The method of claim 341, wherein aggregating entries is
based on commodity offering terms.
[0638] 343. The method of claim 341, wherein aggregating entries is
based on commodity offering pricing.
[0639] 344. The method of claim 341, wherein aggregating entries is
based on customer characteristics.
[0640] 345. The method of claim 341, wherein aggregating entries is
based on risk considerations.
[0641] 346. The method of claim 340, wherein the hedge includes the
purchase of at least one forward contract.
[0642] 347. The method of claim 302, further comprising:
[0643] monitoring customer exercising of a commodity offering;
and
[0644] recording customer exercising of a commodity offering in a
customer profile database.
[0645] 348. The method of claim 347, further comprising:
[0646] associating at least one commodity offering purchase
incentive with the customer profile based on accumulated records of
customer exercising of a commodity offering.
[0647] 349. The method of claim 347, further comprising:
[0648] associating at least one commodity offering purchase
disincentive with the customer profile based on accumulated records
of customer exercising of a commodity offering.
[0649] 350. The method of claim 302, wherein the commodity pricing
model is configured to output at least one price sensitivity
value.
[0650] 351. The method of claim 350, further comprising:
[0651] executing a hedge based at least in part on the at least one
price sensitivity values.
[0652] 352. The method of claim 302, wherein providing payment for
some portion of a commodity purchase for the exercised commodity
offering based on the location of the exercised commodity offering
and the at least one geographic zone specification comprises:
[0653] providing no payment for exercise of a commodity offering
when the location of the exercised commodity offering is different
than the at least one geographic zone specification.
[0654] 353. The method of claim 302, wherein the at least one
geographic zone specification specifies a primary geographic
zone.
[0655] 354. The method of claim 353, further comprising:
[0656] specifying a plurality of peripheral geographic zones in the
commodity offering; and
[0657] determining a commodity offering pricing value for each of
the plurality of peripheral geographic zones and the primary
geographic zone.
[0658] 355. The method of claim 354, wherein the selection by a
customer comprises customer payment of a premium and a strike price
for a specified commodity quantity based on the commodity offering
pricing value for the primary geographic zone.
[0659] 356. The method of claim 355, further comprising:
[0660] providing a payout adjustment to a customer who exercises a
commodity offering in a peripheral geographic zone.
[0661] 357. A processor-implemented method to provide commodity
offerings, comprising:
[0662] setting at least one commodity offering terms for a
commodity offering;
[0663] setting at least one commodity offering exercise
restrictions for a commodity offering;
[0664] determining at least one commodity offering pricing value
based on the at least one commodity offering terms and at least one
commodity offering pricing model for the commodity offering;
[0665] providing the commodity offering, including at least one
association based on the commodity offering pricing values between
a strike price and a premium, for selection by a customer; and
[0666] providing payment for some portion of a commodity purchase
for an exercised commodity offering, wherein the strike price of
the commodity offering is less than a local retail commodity
price.
[0667] 358. The method of claim 357, wherein the commodity is a
fuel.
[0668] 359. The method of claim 358, wherein the fuel is a vehicle
fuel.
[0669] 360. The method of claim 358, wherein the fuel is a heating
fuel.
[0670] 361. The method of claim 358, wherein the local retail
commodity price is a fuel pump price.
[0671] 362. The method of claim 362, wherein fuel pump price is
paid by the customer.
[0672] 363. The method of claim 357, wherein the local retail
commodity price is a commodity price charged by a retail commodity
dealer at which the commodity offering is exercised.
[0673] 364. The method of claim 357, wherein the strike price is
pre-selected and the premium is determined based at least in part
on the strike price.
[0674] 365. The method of claim 357, wherein the premium is
pre-selected and the strike price is determined based at least in
part on the premium.
[0675] 366. The method of claim 357, wherein the commodity offering
pricing model includes at least one commodity market variable.
[0676] 367. The method of claim 366, wherein the at least one
commodity market variable comprises at least one local retail
commodity price.
[0677] 368. The method of claim 366, wherein the at least one
commodity market variable includes any of: wholesale gasoline
over-the-counter options market data, wholesale gasoline
over-the-counter forward market and futures market data, retail
gasoline spot prices, wholesale gasoline implied volatilities,
wholesale gasoline forward curve, spread of retail spot price over
wholesale spot price.
[0678] 369. The method of claim 357, further comprising:
[0679] determining whether the at least one association based on
the commodity offering pricing values between a strike price and a
premium is satisfactory.
[0680] 370. The method of claim 369, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a market information
database for information to be used as a factor in determining
whether said association is satisfactory.
[0681] 371. The method of claim 369, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a customer marketing
database for information to be used as a factor in determining
whether said association is satisfactory.
[0682] 372. The method of claim 371, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0683] 373. The method of claim 371, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0684] 374. The method of claim 369, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a historical usage
database for information to be used as a factor in determining
whether said association is satisfactory.
[0685] 375. The method of claim 374, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0686] 376. The method of claim 374, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0687] 377. The method of claim 357, wherein the commodity offering
term parameters may include any of: strike price, premium, tenor,
constraints, incentives, restrictions, commodity type.
[0688] 378. The method of claim 357, wherein the commodity offering
pricing model comprises a commodity volatility model described by a
stochastic differential equation.
[0689] 379. The method of claim 378, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a Monte Carlo simulation.
[0690] 380. The method of claim 378, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a grid-pricing scheme.
[0691] 381. The method of claim 378, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in at least one analytic formula.
[0692] 382. The method of claim 357, wherein the setting at least
one commodity offering terms is based on a customer
specification.
[0693] 383. The method of claim 382, wherein the customer
specification includes a strike price.
[0694] 384. The method of claim 382, wherein the customer
specification includes a premium.
[0695] 385. The method of claim 382, wherein the customer
specification includes a tenor.
[0696] 386. The method of claim 382, wherein the customer
specification includes a commodity type.
[0697] 387. The method of claim 382, wherein the customer
specification includes at least one geographic zone.
[0698] 388. The method of claim 387, wherein the customer
specification includes at least one primary geographic zone.
[0699] 389. The method of claim 388, wherein the customer
specification includes at least one peripheral geographic zone.
[0700] 390. The method of claim 357, wherein the selection by a
customer comprises customer payment of a premium and a strike price
for a specified commodity quantity.
[0701] 391. The method of claim 390, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a commodity retailer for the commodity
purchase on which the commodity offering has been exercised.
[0702] 392. The method of claim 357, wherein the selection by a
customer comprises customer payment of a premium but not a strike
price for a specified commodity quantity.
[0703] 393. The method of claim 392, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a customer based on a commodity purchase
size and a difference between the strike price and the local retail
commodity price.
[0704] 394. The method of claim 357, wherein the payment for some
portion of a commodity purchase for an exercised commodity offering
is limited to a total commodity quantity specified by the commodity
offering terms.
[0705] 395. The method of claim 357, further comprising:
[0706] recording customer selection of commodity offerings in a
customer selection database; and
[0707] executing a hedge based on entries in the customer selection
database.
[0708] 396. The method of claim 395, further comprising:
[0709] aggregating entries in the customer selection database into
at least one similarity class prior to executing a hedge; and
[0710] executing a hedge based on similarity classes.
[0711] 397. The method of claim 396, wherein aggregating entries is
based on commodity offering terms.
[0712] 398. The method of claim 396, wherein aggregating entries is
based on commodity offering pricing.
[0713] 399. The method of claim 396, wherein aggregating entries is
based on customer characteristics.
[0714] 400. The method of claim 396, wherein aggregating entries is
based on risk considerations.
[0715] 401. The method of claim 395, wherein the hedge includes the
purchase of at least one forward contract.
[0716] 402. The method of claim 357, further comprising:
[0717] monitoring customer exercising of a commodity offering;
and
[0718] recording customer exercising of a commodity offering in a
customer profile database.
[0719] 403. The method of claim 402, further comprising:
[0720] associating at least one commodity offering purchase
incentive with the customer profile based on accumulated records of
customer exercising of a commodity offering.
[0721] 404. The method of claim 402, further comprising:
[0722] associating at least one commodity offering purchase
disincentive with the customer profile based on accumulated records
of customer exercising of a commodity offering.
[0723] 405. The method of claim 357, wherein the commodity pricing
model is configured to output at least one price sensitivity
value.
[0724] 406. The method of claim 405, further comprising:
[0725] executing a hedge based at least in part on the at least one
price sensitivity value.
[0726] 407. The method of claim 357, wherein the at least one
commodity offering exercise restrictions comprise:
[0727] a periodic usage restriction having a specified period.
[0728] 408. The method of claim 407, wherein the specified period
is a month.
[0729] 409. The method of claim 407, wherein the specified period
is a year.
[0730] 410. The method of claim 407, wherein the specified period
is a fiscal quarter.
[0731] 411. The method of claim 407, wherein the periodic usage
restriction having a specified period is configured to allow a
different usage restriction for each period.
[0732] 412. The method of claim 407, wherein the periodic usage
restriction monotonically decreases with the passage of each
successive period.
[0733] 413. The method of claim 407, wherein the periodic usage
restriction monotonically increases with the passage of each
successive period.
[0734] 414. The method of claim 407, wherein the periodic usage
restriction comprises commodity offering term specifying a maximum
allowed usage per period.
[0735] 415. The method of claim 407, wherein the periodic usage
restriction comprises commodity offering term specifying a fixed
allowed usage per period.
[0736] 416. The method of claim 357, wherein the at least one
commodity offering usage restrictions comprise:
[0737] a maximum redemption restriction;
[0738] 417. The method of claim 416, wherein the maximum redemption
restriction comprises a commodity offering term specifying a
limiting commodity price, wherein exercising the commodity offering
on a quantity of commodity with a retail price that is higher than
the limiting commodity price yields a redemption based on the
limiting commodity price and not the retail price.
[0739] 418. The method of claim 416, wherein the maximum redemption
restriction comprises a commodity offering term specifying a
limiting payout, wherein exercising the commodity offering on a
quantity of commodity with a retail price higher than the sum of
the strike price and the limiting payout yields a redemption based
on the limiting payout and not the difference of the retail price
and strike price.
[0740] 419. A processor-implemented method to provide commodity
offerings, comprising:
[0741] setting at least one commodity offering terms for a
commodity offering;
[0742] setting at least one customer behavior direction motive for
a commodity offering;
[0743] setting at least one commodity offering exercise restriction
for a commodity offering based on the at least one customer
behavior direction motive;
[0744] determining at least one commodity offering pricing value
based on the at least one commodity offering terms and at least one
commodity offering pricing model for the commodity offering;
[0745] providing the commodity offering, including at least one
association based on the commodity offering pricing values between
a strike price and a premium, for selection by a customer;
[0746] providing payment for some portion of a commodity purchase
for an exercised commodity offering subject to the at least one
commodity offering exercise restriction, wherein the strike price
of the commodity offering is less than a reference commodity
price.
[0747] 420. The method of claim 419, wherein the commodity is a
fuel.
[0748] 421. The method of claim 420, wherein the fuel is a vehicle
fuel.
[0749] 422. The method of claim 420, wherein the fuel is a heating
fuel.
[0750] 423. The method of claim 419, wherein the reference
commodity price is a commodity price charged by a retail commodity
dealer at which the commodity offering is exercised.
[0751] 424. The method of claim 419, wherein the reference
commodity price is a regional average commodity price.
[0752] 425. The method of claim 419, wherein the reference
commodity price is a national average commodity price.
[0753] 426. The method of claim 419, wherein the strike price is
pre-selected and the premium is determined based at least in part
on the strike price.
[0754] 427. The method of claim 419, wherein the premium is
pre-selected and the strike price is determined based at least in
part on the premium.
[0755] 428. The method of claim 419, wherein the commodity offering
pricing model includes at least one commodity market variable.
[0756] 429. The method of claim 428, wherein the at least one
commodity market variable comprises at least one local retail
commodity price.
[0757] 430. The method of claim 428, wherein the at least one
commodity market variable includes any of: wholesale gasoline
over-the-counter options market data, wholesale gasoline
over-the-counter forward market and futures market data, retail
gasoline spot prices, wholesale gasoline implied volatilities,
wholesale gasoline forward curve, spread of retail spot price over
wholesale spot price.
[0758] 431. The method of claim 419, further comprising:
[0759] determining whether the at least one association based on
the commodity offering pricing values between a strike price and a
premium is satisfactory.
[0760] 432. The method of claim 431, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a market information
database for information to be used as a factor in determining
whether said association is satisfactory.
[0761] 433. The method of claim 431, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a customer marketing
database for information to be used as a factor in determining
whether said association is satisfactory.
[0762] 434. The method of claim 433, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0763] 435. The method of claim 433, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0764] 436. The method of claim 431, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a historical usage
database for information to be used as a factor in determining
whether said association is satisfactory.
[0765] 437. The method of claim 436, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0766] 438. The method of claim 436, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0767] 439. The method of claim 419, wherein the commodity offering
term parameters may include any of: strike price, premium, tenor,
constraints, incentives, restrictions, commodity type.
[0768] 440. The method of claim 419, wherein the commodity offering
pricing model comprises a commodity volatility model described by a
stochastic differential equation.
[0769] 441. The method of claim 440, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a Monte Carlo simulation.
[0770] 442. The method of claim 440, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a grid-pricing scheme.
[0771] 443. The method of claim 440, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in at least one analytic formula.
[0772] 444. The method of claim 419, wherein the setting at least
one commodity offering terms is based on a customer
specification.
[0773] 445. The method of claim 444, wherein the customer
specification includes a strike price.
[0774] 446. The method of claim 444, wherein the customer
specification includes a premium.
[0775] 447. The method of claim 444, wherein the customer
specification includes a tenor.
[0776] 448. The method of claim 444, wherein the customer
specification includes a commodity type.
[0777] 449. The method of claim 444, wherein the customer
specification includes at least one geographic zone.
[0778] 450. The method of claim 449, wherein the customer
specification includes at least one primary geographic zone.
[0779] 451. The method of claim 450, wherein the customer
specification includes at least one peripheral geographic zone.
[0780] 452. The method of claim 419, wherein the selection by a
customer comprises customer payment of a premium and a strike price
for a specified commodity quantity.
[0781] 453. The method of claim 452, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a commodity retailer for the commodity
purchase on which the commodity offering has been exercised.
[0782] 454. The method of claim 419, wherein the selection by a
customer comprises customer payment of a premium but not a strike
price for a specified commodity quantity.
[0783] 455. The method of claim 454, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a customer based on a commodity purchase
size and a difference between the strike price and the local retail
commodity price.
[0784] 456. The method of claim 419, further comprising:
[0785] storing commodity offering exercise information in a
historical usage database.
[0786] 457. The method of claim 456, wherein the commodity offering
exercise information includes a location where the commodity
offering was exercised.
[0787] 458. The method of claim 456, wherein the commodity offering
exercise information includes a commodity quantity on which the
commodity offering was exercised.
[0788] 459. The method of claim 419, wherein the payment for some
portion of a commodity purchase for an exercised commodity offering
is limited to a total commodity quantity specified by the commodity
offering terms.
[0789] 460. The method of claim 419, further comprising:
[0790] recording customer selection of commodity offerings in a
customer selection database; and
[0791] executing a hedge based on entries in the customer selection
database.
[0792] 461. The method of claim 460, further comprising:
[0793] aggregating entries in the customer selection database into
at least one similarity class prior to executing a hedge; and
[0794] executing a hedge based on similarity classes.
[0795] 462. The method of claim 461, wherein aggregating entries is
based on commodity offering terms.
[0796] 463. The method of claim 461, wherein aggregating entries is
based on commodity offering pricing.
[0797] 464. The method of claim 461, wherein aggregating entries is
based on customer characteristics.
[0798] 465. The method of claim 461, wherein aggregating entries is
based on risk considerations.
[0799] 466. The method of claim 460, wherein the hedge includes the
purchase of at least one forward contract.
[0800] 467. The method of claim 419, further comprising:
[0801] monitoring customer exercising of a commodity offering;
and
[0802] recording customer exercising of a commodity offering in a
customer profile database.
[0803] 468. The method of claim 467, further comprising:
[0804] associating at least one commodity offering purchase
incentive with the customer profile based on accumulated records of
customer exercising of a commodity offering.
[0805] 469. The method of claim 467, further comprising:
[0806] associating at least one commodity offering purchase
disincentive with the customer profile based on accumulated records
of customer exercising of a commodity offering.
[0807] 470. The method of claim 419, wherein the commodity pricing
model is configured to output at least one price sensitivity
value.
[0808] 471. The method of claim 470, further comprising:
[0809] executing a hedge based at least in part on the at least one
price sensitivity value.
[0810] 472. The method of claim 419, wherein:
[0811] the at least one customer behavior direction motive
comprises discouraging customers from exercising commodity
offerings on a large commodity quantity near end of a commodity
offering tenor; and
[0812] the at least one commodity offering exercise restriction
comprises a periodic minimum quantity usage restriction, whereby if
a customer exercises a commodity offering in one period on a period
quantity less than a minimum amount specified by the periodic
minimum quantity usage restriction, the customer forfeits rights to
exercise on a commodity quantity equal to the difference between
the minimum amount and the period quantity.
[0813] 473. A processor-implemented method to provide commodity
offerings, comprising:
[0814] setting at least one commodity offering terms for a
commodity offering;
[0815] determining at least one commodity offering pricing value
based on the at least one commodity offering terms and at least one
commodity offering pricing model for the commodity offering;
[0816] providing the commodity offering, including at least one
association based on the commodity offering pricing values between
a strike price and a premium, for selection by a customer;
[0817] providing payment for some portion of a commodity purchase
for an exercised commodity offering, wherein the strike price of
the commodity offering is less than a local retail commodity
price;
[0818] recording customer behavior, including selection and
exercise of commodity offerings, in a customer behavior database;
and
[0819] modifying the at least one commodity offering pricing model
based on the customer behavior database.
[0820] 474. The method of claim 473, wherein the commodity is a
fuel.
[0821] 475. The method of claim 474, wherein the fuel is a vehicle
fuel.
[0822] 476. The method of claim 474, wherein the fuel is a heating
fuel.
[0823] 477. The method of claim 474, wherein the local retail
commodity price is a fuel pump price.
[0824] 478. The method of claim 478, wherein fuel pump price is
paid by the customer.
[0825] 479. The method of claim 473, wherein the local retail
commodity price is a commodity price charged by a retail commodity
dealer at which the commodity offering is exercised.
[0826] 480. The method of claim 473, wherein the strike price is
pre-selected and the premium is determined based at least in part
on the strike price.
[0827] 481. The method of claim 473, wherein the premium is
pre-selected and the strike price is determined based at least in
part on the premium.
[0828] 482. The method of claim 473, wherein the commodity offering
pricing model includes at least one commodity market variable.
[0829] 483. The method of claim 482, wherein the at least one
commodity market variable comprises at least one local retail
commodity price.
[0830] 484. The method of claim 482, wherein the at least one
commodity market variable includes any of: wholesale gasoline
over-the-counter options market data, wholesale gasoline
over-the-counter forward market and futures market data, retail
gasoline spot prices, wholesale gasoline implied volatilities,
wholesale gasoline forward curve, spread of retail spot price over
wholesale spot price.
[0831] 485. The method of claim 473, further comprising:
[0832] determining whether the at least one association based on
the commodity offering pricing values between a strike price and a
premium is satisfactory.
[0833] 486. The method of claim 485, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a market information
database for information to be used as a factor in determining
whether said association is satisfactory.
[0834] 487. The method of claim 485, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a customer marketing
database for information to be used as a factor in determining
whether said association is satisfactory.
[0835] 488. The method of claim 487, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0836] 489. The method of claim 487, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0837] 490. The method of claim 485, wherein the determining
whether the at least one association based on the commodity
offering pricing values between a strike price and a premium is
satisfactory, further, comprises querying a historical usage
database for information to be used as a factor in determining
whether said association is satisfactory.
[0838] 491. The method of claim 490, wherein the commodity offering
terms are adjusted based on the determination of whether the
association is satisfactory.
[0839] 492. The method of claim 490, wherein the commodity pricing
model is adjusted based on the determination of whether the
association is satisfactory.
[0840] 493. The method of claim 473, wherein the commodity offering
term parameters may include any of: strike price, premium, tenor,
constraints, incentives, restrictions, commodity type.
[0841] 494. The method of claim 473, wherein the commodity offering
pricing model comprises a commodity volatility model described by a
stochastic differential equation.
[0842] 495. The method of claim 494, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a Monte Carlo simulation.
[0843] 496. The method of claim 494, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in a grid-pricing scheme.
[0844] 497. The method of claim 494, wherein the commodity
volatility model described by a stochastic differential equation is
manifested in at least one analytic formula.
[0845] 498. The method of claim 473, wherein the setting at least
one commodity offering terms is based on a customer
specification.
[0846] 499. The method of claim 498, wherein the customer
specification includes a strike price.
[0847] 500. The method of claim 498, wherein the customer
specification includes a premium.
[0848] 501. The method of claim 498, wherein the customer
specification includes a tenor.
[0849] 502. The method of claim 498, wherein the customer
specification includes a commodity type.
[0850] 503. The method of claim 498, wherein the customer
specification includes at least one geographic zone.
[0851] 504. The method of claim 503, wherein the customer
specification includes at least one primary geographic zone.
[0852] 505. The method of claim 504, wherein the customer
specification includes at least one peripheral geographic zone.
[0853] 506. The method of claim 473, wherein the selection by a
customer comprises customer payment of a premium and a strike price
for a specified commodity quantity.
[0854] 507. The method of claim 506, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a commodity retailer for the commodity
purchase on which the commodity offering has been exercised.
[0855] 508. The method of claim 473, wherein the selection by a
customer comprises customer payment of a premium but not a strike
price for a specified commodity quantity.
[0856] 509. The method of claim 508, wherein payment for some
portion of a commodity purchase for an exercised commodity offering
comprises a payment to a customer based on a commodity purchase
size and a difference between the strike price and the local retail
commodity price.
[0857] 510. The method of claim 473, further comprising:
[0858] storing commodity offering exercise information in a
historical usage database.
[0859] 511. The method of claim 510, wherein the commodity offering
exercise information includes a location where the commodity
offering was exercised.
[0860] 512. The method of claim 510, wherein the commodity offering
exercise information includes a commodity quantity on which the
commodity offering was exercised.
[0861] 513. The method of claim 473, wherein the payment for some
portion of a commodity purchase for an exercised commodity offering
is limited to a total commodity quantity specified by the commodity
offering terms.
[0862] 514. The method of claim 473, further comprising:
[0863] recording customer selection of commodity offerings in a
customer selection database; and
[0864] executing a hedge based on entries in the customer selection
database.
[0865] 515. The method of claim 514, further comprising:
[0866] aggregating entries in the customer selection database into
at least one similarity class prior to executing a hedge; and
[0867] executing a hedge based on similarity classes.
[0868] 516. The method of claim 515, wherein aggregating entries is
based on commodity offering terms.
[0869] 517. The method of claim 515, wherein aggregating entries is
based on commodity offering pricing.
[0870] 518. The method of claim 515, wherein aggregating entries is
based on customer characteristics.
[0871] 519. The method of claim 515, wherein aggregating entries is
based on risk considerations.
[0872] 520. The method of claim 514, wherein the hedge includes the
purchase of at least one forward contract.
[0873] 521. The method of claim 473, further comprising:
[0874] monitoring customer exercising of a commodity offering;
and
[0875] recording customer exercising of a commodity offering in a
customer profile database.
[0876] 522. The method of claim 521, further comprising:
[0877] associating at least one commodity offering purchase
incentive with the customer profile based on accumulated records of
customer exercising of a commodity offering.
[0878] 523. The method of claim 521, further comprising:
[0879] associating at least one commodity offering purchase
disincentive with the customer profile based on accumulated records
of customer exercising of a commodity offering.
[0880] 524. The method of claim 473, wherein the commodity pricing
model is configured to output at least one price sensitivity
value.
[0881] 525. The method of claim 524, further comprising:
[0882] executing a hedge based at least in part on the at least one
price sensitivity value.
[0883] 526. The method of claim 473, wherein the customer behavior
includes a local retail commodity price at a time and retail
establishment at which a customer has exercised a commodity
offering.
[0884] 527. The method of claim 526, wherein the customer behavior
further includes a regional average commodity price at a time and
an area within which a customer has exercised a commodity
offering.
[0885] 528. The method of claim 527, further comprising:
[0886] ascribing a negative status point to a customer profile in
the customer behavior database if the local retail commodity price
at a time and retail establishment exceeds the regional average
commodity price at a time and vicinity by an amount greater than a
pre-set threshold.
[0887] 529. The method of claim 528, further comprising:
[0888] assigning a disincentive package to the customer profile
based on an accumulation of negative status points.
[0889] 530. The method of claim 527, further comprising:
[0890] ascribing a positive status point to a customer profile in
the customer behavior database if the local retail commodity price
at a time and retail establishment is less than the regional
average commodity price at a time and vicinity by an amount greater
than a pre-set threshold.
[0891] 531. The method of claim 530, further comprising:
[0892] assigning an incentive package to the customer profile based
on an accumulation of negative status points.
[0893] 532. The method of claim 473, wherein the modifying the at
least one commodity offering pricing model based on the customer
behavior database comprises:
[0894] ascribing at least one penalty for solicitation of a
retailer satisfying a set of penalty criteria, comprising:
[0895] the retailer's local retail commodity price consistently
exceeds a regional average retail commodity price for a region
containing the retailer; and
[0896] a number of commodity offerings exercised at the retailer
exceeds a pre-set threshold.
[0897] 533. The method of claim 473, wherein the modifying the at
least one commodity offering pricing model based on the customer
behavior database comprises:
[0898] ascribing at least one incentive for solicitation of a
retailer satisfying a set of incentive criteria, comprising:
[0899] the retailer's local retail commodity price is consistently
less than a regional average retail commodity price for a region
containing the retailer; and
[0900] a number of commodity offerings exercised at the retailer is
less than a pre-set threshold.
[0901] The entirety of this disclosure (including the Cover Page,
Title, Headings, Field, Background, Summary, Brief Description of
the Drawings, Detailed Description, Claims, Abstract, Figures, and
otherwise) shows by way of illustration various embodiments in
which the claimed inventions may be practiced. The advantages and
features of the disclosure are of a representative sample of
embodiments only, and are not exhaustive and/or exclusive. They are
presented only to assist in understanding and teach the claimed
principles. It should be understood that they are not
representative of all claimed inventions. As such, certain aspects
of the disclosure have not been discussed herein. That alternate
embodiments may not have been presented for a specific portion of
the invention or that further undescribed alternate embodiments may
be available for a portion is not to be considered a disclaimer of
those alternate embodiments. It will be appreciated that many of
those undescribed embodiments incorporate the same principles of
the invention and others are equivalent. Thus, it is to be
understood that other embodiments may be utilized and functional,
logical, organizational, structural and/or topological
modifications may be made without departing from the scope and/or
spirit of the disclosure. As such, all examples and/or embodiments
are deemed to be non-limiting throughout this disclosure. Also, no
inference should be drawn regarding those embodiments discussed
herein relative to those not discussed herein other than it is as
such for purposes of reducing space and repetition. For instance,
it is to be understood that the logical and/or topological
structure of any combination of any program components (a component
collection), other components and/or any present feature sets as
described in the figures and/or throughout are not limited to a
fixed operating order and/or arrangement, but rather, any disclosed
order is exemplary and all equivalents, regardless of order, are
contemplated by the disclosure. Furthermore, it is to be understood
that such features are not limited to serial execution, but rather,
any number of threads, processes, services, servers, and/or the
like that may execute asynchronously, concurrently, in parallel,
simultaneously, synchronously, and/or the like are contemplated by
the disclosure. As such, some of these features may be mutually
contradictory, in that they cannot be simultaneously present in a
single embodiment. Similarly, some features are applicable to one
aspect of the invention, and inapplicable to others. In addition,
the disclosure includes other inventions not presently claimed.
Applicant reserves all rights in those presently unclaimed
inventions including the right to claim such inventions, file
additional applications, continuations, continuations in part,
divisions, and/or the like thereof. As such, it should be
understood that advantages, embodiments, examples, functional,
features, logical, organizational, structural, topological, and/or
other aspects of the disclosure are not to be considered
limitations on the disclosure as defined by the claims or
limitations on equivalents to the claims.
* * * * *
References