B2Bs are online markets where buyers and sellers trade products either in the spot market or via derivate instruments such as option contracts. Our goal in this paper is to show how procurement managers, in addition to buying on the spot market in cash (physical transactions), can integrate risk management tools (paper transactions) to mitigate risk over multiple time periods. Specifically, our...

We propose a mean-reverting model for the spot price dynamics of electricity which includes seasonality of the prices and spikes. The dynamics is a sum of non-Gaussian Ornstein-Uhlenbeck processes with jump processes giving the normal variations and spike behaviour of the prices. The amplitude and frequency of jumps may be seasonally dependent. The proposed dynamics ensures that spot prices are...

Pricing and estimation issues of exponential aÆne stochastic volatility models are discussed. One speci c model is estimated with Chicago Board of Trade futures price data, where the instantaneous mean and volatility of commodity spot price are allowed to be time varying. Model performance is evaluated based on its t to the futures price term structure and the model implied state variable behav...

electricity price predictions have become a major discussion on competitive market under deregulated power system. but, the exclusive characteristics of electricity price such as non-linearity, non-stationary and time-varying volatility structure present several challenges for this task. in this paper, a new forecast strategy based on the iterative neural network is proposed for day-ahead price...

Spot instance is an auction based Amazon Elastic Compute Cloud (EC2) instance provided by Amazon Web Service (AWS). It aims to help users to reduce their resource renting cost. The price for spot instances sometimes can be as low as one tenth of the price of the same type on demand instances. However, while gaining significantly cost savings on renting resources, users take risks on running ins...

The spot pricing scheme has been considered to be resource-efficient for providers and cost-effective for consumers in the Cloud market. Nevertheless, unlike the static and straightforward strategies of trading ondemand and reserved Cloud services, the market-driven mechanism for trading spot service would be complicated for both implementation and understanding. The largely invisible market ac...