The Infona portal uses cookies, i.e. strings of text saved by a browser on the user's device. The portal can access those files and use them to remember the user's data, such as their chosen settings (screen view, interface language, etc.), or their login data. By using the Infona portal the user accepts automatic saving and using this information for portal operation purposes. More information on the subject can be found in the Privacy Policy and Terms of Service. By closing this window the user confirms that they have read the information on cookie usage, and they accept the privacy policy and the way cookies are used by the portal. You can change the cookie settings in your browser.
Dynamic Spectrum Sharing is an emerging spectrum access model for increasing access to RF spectrum by commercial, government, and military systems. Rather than accessing spectrum based on pre-determined frequency assignments, dynamic spectrum sharing allows users to autonomously identify and dynamically access available spectrum based on sets of pre-determined rules. While various spectrum sharing...
Reverse pricing has been recognized as an effective tool to handle demand uncertainty in the travel industry (e.g., airlines and hotels). To investigate its viability for communication networks, we study the practical limitations of (operator-driven) time-dependent pricing that has been recently introduced, taking into account demand uncertainty. Compared to (operator-driven) time-dependent pricing,...
This paper studies the optimal pricing for a monopoly firm under uncertain demand and souring from uncertain supply, which are often studied separately. The firm sets a price for consumers before demand uncertainty is resolved. Speculators enter the market purely with the intention of resale, which can be profitable if demand turns out to be high. The firm sets the discount price to attract speculators...
We consider a newsvendor problem with price-dependent demand and emergency purchase option allowed after the realization of random demand. By stochastic comparisons, we investigate the effects of demand uncertainty on pricing and order quantity decisions as well as expected profit of the newsvendor, under second order stochastic dominance. Our findings include: (i) in general, a less variable demand...
Irreversible investments with largest outlay made with incomplete information are the mainstay of the oilfield development. Real Options Analysis (ROA) is a useful tool for making investment decisions under market uncertainty. Normal information generates continuous mean-reverting process for oil prices, whereas random abnormal information generates discrete jumps of random size. We evaluate an oilfield...
In this paper, we study a pricing-inventory model with multiple interdependent products and stochastic demand. In the relevant literature, there are many researches that try to optimize the inventory or price independently and also optimizing joint inventory and pricing problems for single product. But joint optimization of inventory and pricing for multiple interdependent products is relatively new...
This paper presents a real options framework to help shipbuilding business evaluating investment project properly and making a correct investment decision. In China, shipbuilding enterprises' fixed assets investment evaluation methods used are almost based on the traditional DCF methods, nonetheless the DCF methods are have many defects. The paper begins with analyzed and summarized the advantages...
With the globalization of world economy, China's electronic industry market uncertainty also increases. Real option theory is of great help for electronics industry investment risks and uncertainties in question. Since the 1990s, the real option theory in the United States began to rise. This paper first introduces real option theory and its development are briefly reviewed, then using this theory...
The oilfield development is a high-risk venture and requires the largest outlay which is not Irreversible. This paper proposes a new model, based on Real Option Pricing with Mean-Reverting jump, to find an optimal decision rule for alternatives of investment regarding the development of an oil field under market uncertainty. The objective of this new model is to help decision-making in the following...
This paper studies the pricing and ordering policy of a two-echelon supply chain with a supplier and a retailer. The retailer has accurate demand information while the supplier does not. The research shows that the uncertainty of the supplier on the demand will lead to a reduction of the supplier's expected profit, which also shows the value of information. Moreover, if the supplier overestimates...
Real options method has been increasingly used in value assessment and decision-making of investment projects. However, the determination of volatility factor in the pricing model is still an open issue. In this paper, system dynamics approach is presented, to set a model on influencing factors and decision-making process of uncertain investment projects. Acquire different volatility data of project...
Considering the valuation of forest stands based on uncertain revenue from wood sales, concession policy (such as carbon subsidies), and associated costs, the paper focuses on building a stochastic control model to study the forest asset dynamic management. The key contributions are to establish a stochastic control model and to find the optimal dynamic strategy about harvesting quantity in the continual...
DC Optimal Power Flow (DCOPF) model calculates locational marginal prices (LMPs) in order to optimize the total operation cost of system. Generally, no account is taken for the cost of network topology uncertainty. In this paper, first, a DCOPF algorithm is presented to consider network topology uncertainty. The optimization function algorithm has three items that depend on the line and unit parameters...
Hybrid wind-Diesel stand alone system sizing accounting for fuel price uncertainty is considered. The starting point is constituted by a previously developed deterministic model able to minimize longterm total costs of the system, accounting also for parameters affecting expected lives of relevant components. Due to the sensitiveness of the solution of the problem to the uncertainty of fuel price...
A two-level supply chain in fuzzy environment with one supplier and two competing manufacturers is considered in this paper. The fuzzies are with the demand parameters, how the firms to make their own decisions considering the competitive factor and fuzzy demand are explored under the centralized channel case and decentralized channel case. At last, a numerical studies is given.
The paper explores the marginal cost pricing (MCP) issues in a traffic network with stochastic demand. It has been known that the naïve method by simply replacing the link flow and link travel time in the original MCP with their expected values is not workable. While on the other hand, when network uncertainty is accounted for, not only the mean travel time but also the variance of travel time, i...
By using dynamic programming it is discussed that under high uncertainty and competition how to make strategy decision on an integrated system project. The decision analysis model is proposed. Investment decision critical values of the project are solved and the values of the integrated system project are deeply discussed under the technologies and cost uncertainty. The models, which are developed...
The financial market with Knightian uncertainty is studied. Applying the important theories of backward stochastic differential equation and the method of time-risk discount, the dynamic robust pricing model of reload stock option has been studied. The explicit solution of the model has been given. At last, the article takes the stock of Sinopec as example to perform numerical analysis. The paper...
Today's online advertising contracts tie online advertising payments directly to campaign measurement data such as click-throughs and purchases. This paper applies the economic theory of incentive contracts to the study of these pricing models and provides potential explanations as to when and how CPC (cost-per-click-through) and CPA (cost-per-action) pricing models should be used. We argue that using...
This paper investigates the newsvendor model with advertise-setting. The retailer faces stochastic advertisement sensitive demands, she has to make the advertising and inventory decisions before the demand is realized. First, we establish the regular condition for the model and a sufficient condition under which the optimal advertising decision is no more than its risk-less counterpart. Next, we show...
Set the date range to filter the displayed results. You can set a starting date, ending date or both. You can enter the dates manually or choose them from the calendar.