Search results for " price"
showing 10 items of 290 documents
Introduction to Price Bundling
1999
Collecting goods or services in a package and selling them at a (discounted) package price has become a widespread sales practice in many production or service oriented industries. The methodology itself is called Price Bundling and can be classified as a price differentiation tool for the price management of multiproduct/service enterprises.
Pricing of Forwards and Options in a Multivariate Non-Gaussian Stochastic Volatility Model for Energy Markets
2013
In Benth and Vos (2013) we introduced a multivariate spot price model with stochastic volatility for energy markets which captures characteristic features, such as price spikes, mean reversion, stochastic volatility, and inverse leverage effect as well as dependencies between commodities. In this paper we derive the forward price dynamics based on our multivariate spot price model, providing a very flexible structure for the forward curves, including contango, backwardation, and hump shape. Moreover, a Fourier transform-based method to price options on the forward is described.
Branch-and-Price-and-Cut for the Truck-and-Trailer Routing Problem with Time Windows
2018
In this paper, we present a new branch-and-price-and-cut algorithm to solve the truck-and-trailer routing problem with time windows (TTRPTW) and two real-world extensions. In all TTRPTW variants, the fleet consists of one or more trucks that may attach a trailer. Some customers are not accessible with a truck-and-trailer combination, but can however be serviced by one if the trailer is previously detached and parked at a suitable location. In the first extension, the planning horizon comprises two days and customers may be visited either on both days or only once, in which case twice the daily supply must be collected. The second extension incorporates load transfer times depending on the …
Branch-and-Price-and-Cut for the Active-Passive Vehicle-Routing Problem
2018
This paper presents a branch-and-price-and-cut algorithm for the exact solution of the active-passive vehicle-routing problem (APVRP). The APVRP covers a range of logistics applications where pickup-and-delivery requests necessitate a joint operation of active vehicles (e.g., trucks) and passive vehicles (e.g., loading devices such as containers or swap bodies). The objective is to minimize a weighted sum of the total distance traveled, the total completion time of the routes, and the number of unserved requests. To this end, the problem supports a flexible coupling and decoupling of active and passive vehicles at customer locations. Accordingly, the operations of the vehicles have to be s…
Disentangling Housing Supply to Shift towards Smart Cities: Analysing Theoretical and Empirical Studies
2022
The search for a pleasant home has concerned people ever since. Paradoxically, people are facing strong difficulties in finding a decent place to settle their lives in cities. As such, the housing market regained momentum in connection with the development of Smart Cities, where life quality of residents is strongly emphasized. Well-being in the metropolis is affected by a wide variety of factors with housing supply being among the most important, hence stirred by financing costs, construction costs, vacancy rate, sales delay, inflation rate, housing stock, price of agricultural land, and regulation. The present article reviews empirical studies on housing supply for a better understanding …
Housing Affordability for Urban Regions
2021
Urban regions are recognised as driving forces of the global economy as well as the main sources of social inequality. In recent decades, particularly, housing access has become a serious problem, not only for the most disadvantaged population, but also for the middle class, as a result of economic crises and despite of prices decline in the housing market. In urban regions with high population density, some social groups face problems of housing affordability that depend not only on market prices but also on income availability. The contribution proposes a methodology for income-threshold assessment through a combination between the ratio income and the residual income approaches, which is…
What to show on the wine labels: a hedonic analysis of price drivers of Sicilian wines
2013
Unlike previous literature, we construct a hedonic model of wine price that incorporates all the main categories of variables simultaneously to enable a better evaluation of their importance on wine price formation. A comprehensive model has the advantage of providing more reliable estimates of the attributes' implicit prices thereby facilitating firms' pricing and improving effectiveness of wine production and marketing decisions. We utilize two different datasets of Sicilian wines collecting data from influential wine guides. Our results suggest that wine price strongly depends on objective features such as vintage, alcoholic content, geographical origin, grape variety, producer size and …
What really causes large price changes?
2003
We study the cause of large fluctuations in prices in the London Stock Exchange. This is done at the microscopic level of individual events, where an event is the placement or cancellation of an order to buy or sell. We show that price fluctuations caused by individual market orders are essentially independent of the volume of orders. Instead, large price fluctuations are driven by liquidity fluctuations, variations in the market's ability to absorb new orders. Even for the most liquid stocks there can be substantial gaps in the order book, corresponding to a block of adjacent price levels containing no quotes. When such a gap exists next to the best price, a new order can remove the best q…
A Reduced-Form Model for Warrant Valuation
2011
This paper studies warrant valuation using a reduced-form model. Analogous to the credit risk literature, structural models require complete information about the asset value process and the firm’s liabilities. In contrast, reduced-form models require only information about the firm’s stock price process. We introduce a reduced-form model where the warrant holder is a price taker, and we relate our model to structural models appearing in the literature.
The Economic Impact of the South-North Water Transfer Project in China: A Computable General Equilibrium Analysis
2006
Water resources are unevenly spread in China. Especially the basins of the Yellow, Hui and Hai rivers in the North are rather dry. To increase the supply of water in these basins, the South-to-North Water Transfer project (SNWT) was launched. Using a computable general equilibrium model this study estimates the impact of the project on the economy of China and the rest of the world. We contrast three alternative groups of scenarios. All are directly concerned with the South-to-North water transfer project to increase water supply. In the first group of scenarios additional supply implies productivity gains. We call it the "non-market" solution. The second group of scenarios is called "marke…