The Internet Demand Experiment or INDEX is a market and technology trial. Its objective is to determine how much users value different qualities of service for Interent access. Findings from the trial imply that today’s system of flat-rate pricing by ISPs is very inefficient. Flat-rate pricing wastes resources, requires light users to subsidize heavy users, and hinders deployment of broadband a...

Wind power generators face risks derived from fluctuations in market prices and variability production, generated by their high dependence on wind speed. These could be hedged using weather financial instruments. In this research, we design price an up-and-in European put barrier option Monte Carlo simulation. Under the existence of a structured market, producers may purchase to hedge fluctuati...

In this paper, we investigate the importance of different loss functions when estimating and evaluating option pricing models. Our analysis shows that it is important to take into account parameter uncertainty, since this leads to uncertainty in the predicted option price. We illustrate the effect on the out-of-sample pricing errors in an application of the ad-hoc Black-Scholes model to DAX ind...

I this paper, we investigate the methodological issue of determining the number of state variables required for options pricing. After showing the inadequacy of the principal component analysis approach, which is commonly used in the literature, we adopt a nonparametric regression technique with nonlinear principal components extracted from the implied volatilities of various moneyness and matu...

We present a methodology allowing to introduce manufacturers and retailers vertical contracting in their pricing strategies on a differentiated product market. We consider in particular two types of non linear pricing relationships, one where resale price maintenance is used with two part tariffs contracts and one where no resale price maintenance is allowed in two part tariffs contracts. Our c...

This study aimed to compare composition of the optimal portfolio stocks, proportion funds in each these stocks and calculate risk return from Investor33 (INV33) Index Jakarta Islamic (JII) research period January 2016-December 2018. The method used this is a quantitative descriptive method. Sample using purposive sampling were 24 stock INV33 17 JII Index. results as follows : (1) by capital ass...