In this chapter, we describe stochastic discounting and valuation of random cash flows in a discrete time setting. We therefore introduce a consistent multiperiod pricing framework. This consistent multiperiod pricing framework is either based on state price deflators or on equivalent martingale measures. The connection between these two pricing concepts is then described by the market price of...

This paper discusses the concept o f economic value in relation to the appraisal of marine environmental resources. The difficulties of placing monetary values on environmental goods and services for which there is no market are briefly reviewed. A case study is presented which uses contingent valuation to estimate the user value associated with a recreational beach. The paper concludes that ec...

Continuous-time random walks are a well suited tool for the description of market behaviour at the smallest scale: the tick-to-tick evolution. We will apply this kind of market model to the valuation of perpetual American options: derivatives with no maturity that can be exercised at any time. Our approach leads to option prices that fulfil financial formulas when canonical assumptions on the d...

This study explores the interaction between innovations and financial markets using newly available data of China that present significant geographic variations in economic development. Empirical evidence suggests that provincial banking development encourages local innovations, and provincial intellectual property (IP) protection raises the market values of local firms. Firmlevel innovations l...

Valuation is often said to be “an art not a science” but this relates to the techniques employed to calculate value not to the underlying concept itself. Valuation is the process of estimating price in the market place. Yet, such an estimation will be affected by uncertainties. Uncertainty in the comparable information available; uncertainty in the current and future market conditions and uncer...

In order to clear a new product or market, the key factor a CCP must consider is its ability to manage the risks the product or market presents including the risk of default. This would normally require: the CCP has access to accurate pricing and valuation data; a degree of contract standardisation; and sufficiently deep liquidity in the market (or in sufficiently close hedges) to facilitate de...

a r t i c l e i n f o Article history: First received in 18, July 2012 and was under review for 4 ½ months Available online xxxx Personalization of the marketing mix is a topic of much interest to marketing academics and practitioners. Using discrete choice demand theory, we investigate the aggregate market value for product attribute improvements when firms are engaged in personalized pricing....