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We study a new data set of US sports card conventions from the perspective of the pricing theory of two-sided markets. Conventions are two-sided because organizers must set fees to attract both cons...
The theory of public utility pricing provides clear recommendations when the regulator and utility have same information about the underlying economic environment – the structure of demand and the p...
This paper reports on the results of a dynamic pricing experiment that compares the performance of three popular pricing programs–hourly pricing, critical peak pricing, and critical peak-pricing w...
Widespread participation of retail electricity consumers in short-term wholesale electricity markets throughout the United States is rapidly becoming technologically feasible. A number of juri...
This paper analyzes the results of a critical peak pricing (CPP) experiment involving 123 residential customers of the City of Anaheim Public Utilities (APU) over the period June 1, 2005 to October ...
We compare the empirical performance of a standard incomplete markets asset pricing model with that of a novel model with constrained Pareto-optimal allocations. We represent the models’ stochastic d...
New Theories of Predatory Pricing.
Predatory Pricing     Predatory  Pricing       2015/7/21
Predatory Pricing.
Premiums in health insurance markets frequently do not reflect individual differences in costs, either because consumers have private information or because prices are not risk rated. This creates i...
In this paper, we model financial markets with semi-Markov volatilities and price covarinace and correlation swaps for this markets. Numerical evaluations of vari- nace, volatility, covarinace and cor...
Classical solvable stochastic volatility models (SVM) use a CEV process for instantaneous variance where the CEV parameter $\gamma$ takes just few values: 0 - the Ornstein-Uhlenbeck process, 1/2 - the...
This work addresses the problem of optimal pricing and hedging of a European option on an illiquid asset Z using two proxies: a liquid asset S and a liquid European option on another liquid asset Y. W...
We study the valuation and hedging problem of European options in a market subject to liquidity shocks. Working within a Markovian regime-switching setting, we model illiquidity as the inability to tr...
We study the local volatility function in the Foreign Exchange market where both domestic and foreign interest rates are stochastic. This model is suitable to price long-dated FX derivatives. We deriv...
In this paper, we study the price of Variable Annuity Guarantees, especially of Guaranteed Annuity Options (GAO) and Guaranteed Minimum Income Benefit (GMIB), and this in the settings of a derivative ...

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