Senior managers in retail industry make important decisions upon assortment planning, product pricing, and product promotion. While product assortment is a strategic decision taken over a long-term planning period (Kök et al., 2006), the latter two are both strategic and tactical: they can be used in dayto-day marketing decisions to dynamically adjust to demand variations. Within the food retai...

The actuarial and the financial approach to the pricing of risk remain different despite the increasingly direct interconnection of financial and insurance markets. The difference can be summarized as pricing based on classical risk theory (insurance) vs. non-arbitrage pricing (finance). However, comparable pricing principles are of importance when it comes to transferring insurance risk to fin...

As in the market in North America, major barriers to private investment in the development and production of vaccines exist for markets in developing countries. These include the risks of uncertain funding and demand and the difficulties created by historically low pricing. A number of promising and innovative approaches nonetheless are being explored to increase the incentives and reduce the r...

Real option analysis has been studied and applied in evaluating information technology (IT) investments for more than a decade. Its advantages over the traditional discounted cash flow techniques have been widely recognized in the information systems (IS) community. However real option analysis has yet to be seen in valuing digital government projects where the real option analysis and option t...

I grate thank was p G12 Asset Pricing Each company faces day to day investment opportunities. Just by staying in business the company is taking a decision of reinvesting. These oportunities have to be fairly valued to overcome misallocation of resources. When a company has a contingent cash flow (growth option), and under particular circumstances this stream of cash flow is valued using the dis...

Abstract: We consider a dynamic pricing problem for a monopolistic company selling a perishable product when customer demand is uncertain and occurs in batches which must be fulfilled as a whole. The seller can price-discriminate between the batches of different size by setting different unit prices. The problem is modeled as a stochastic optimal control problem to find an inventory-contingent ...

Most customers in electricity markets do not face prices that change frequently to reflect changes in wholesale costs, known as real-time pricing (RTP). We show that not only does time-invariant pricing in competitive markets lead to prices and investment that are not first best, it even fails to achieve the constrained second-best optimum. Increasing the share of customers on RTP is likely to ...

Pension buy-ins and buy-outs have become an important aspect of managing pension risk in recent years. As a step toward understanding these pension de-risking instruments, we develop models for pricing investment risk and longevity risk embedded in pension buy-ins and buy-outs. We also bring a contingent-claims framework to price credit risk of buy-in bulk annuities. Overall, our model can be u...