we use the basic binomial option pricing method but allow someor all the parameters in the model to be uncertain and model this uncertaintyusing fuzzy numbers. we show that with the fuzzy model we can, with areasonably small number of steps, consider almost all possible future stockprices; whereas the crisp model can consider only n + 1 prices after n steps.

This research assesses how U.S. transit agencies have taken advantage of congestion pricing projects and answers two questions: (1) what role has transit played in U.S. congestion pricing projects, and (2) how have transit agencies responded to congestion pricing projects through service planning, operating practices, capital investment, and institutional arrangements. First, transit is seen as...

This paper presents a method to allocate the transmission network costs to users based on nodal pricing approach by regulating the nodal prices from the marginal point to the new point. Transmission nodal pricing based on marginal prices is not able to produce enough revenue to recover the total transmission network costs. However, according to the previous studies in this context, this met...

A unique value proposition of Internet-based digital marketing is the availability of precise measures of the actual performance of individual campaigns, which makes performance-based advertising pricing schedules feasible. These pricing schemes are studied in the presence of competition, performance uncertainty and asymmetric information about the quality of the client’s content and the effect...

Abstract— Congestion-sensitive pricing schemes for wide area networks have attracted significant attention over the last decade. Several proposals have been made for congestion-sensitive pricing of the Internet. One key implementation obstacle for these dynamic pricing schemes is the necessity of frequent price updates whereas the structure of wide area networks does not allow frequent price up...

This paper presents an analytical view of variance reduction by control variate technique for pricing arithmetic Asian options as a financial derivatives. In this paper, the effect of correlation between two random variables is shown. We propose an efficient method for choose suitable control in pricing arithmetic Asian options based on the control variates (CV). The numerical experiment shows ...

We demonstrate that in a CAPM economy Walras Law and the Tobin Separation Property characterize market demand on nite sets of prices. Consequently, for any number n there exist CAPM economies which have at least n equilibria and hence have n di erent beta pricing formulas. It is shown that the lower bound on the number of equilibria, n, is robust to pertubations of endowments.

The. theory of reduced incidence algebras of binomial posets furnishes a unified treatment of several types of generating functions that arise in enumerative combinatorics. Using this theory as a tool, we study ‘reduced covering algebras’ of binomial lattices and show that they are isomorphic to various algebras of q-binomial generating functions for certain modular binomial lattices.

Evidence indicates that people fear change and the unknown. We model this behavior as familiarity bias in which individuals focus on adverse scenarios in evaluating defections from the status quo. The model explains portfolio underdiversification, home and local biases. More importantly, equilibrium stock prices reflect an unfamiliarity premium. In an international setting, our model predicts t...