Abstract: A real-time, interactive auction process for use in electronic commerce includes buyer and administrator interfaces coupled to a central controller via a global information network. The central controller processes and stores customer and product information as well as offer (acceptable price) information and order (bid) information. Each product is assigned a minimum acceptable price (MAP) as well as a virtual minimum acceptable price (VMAP). The VMAP is always greater than MAP and is assigned one of three parameters, loose, medium, or tight. The VMAP is generated randomly within a loose, medium, or tight range of the MAP. The bidder can submit as many as three bids with counter offers made to the first two bids. If the third bid is declined, the bidder is locked out of the bidding process.