Search results for "costs"
showing 10 items of 332 documents
The Best Hedging Strategy in the Presence of Transaction Costs
2009
Considerable theoretical work has been devoted to the problem of option pricing and hedging with transaction costs. A variety of methods have been suggested and are currently being used for dynamic hedging of options in the presence of transaction costs. However, very little was done on the subject of an empirical comparison of different methods for option hedging with transaction costs. In a few existing studies the different methods are compared by studying their empirical performances in hedging only a plain-vanilla short call option. The reader is tempted to assume that the ranking of the different methods for hedging any kind of option remains the same as that for a vanilla call. The …
European Option Pricing with Transaction Costs and Stochastic Volatility: an Asymptotic Analysis
2015
In this paper the valuation problem of a European call option in presence of both stochastic volatility and transaction costs is considered. In the limit of small transaction costs and fast mean reversion, an asymptotic expression for the option price is obtained. While the dominant term in the expansion it is shown to be the classical Black and Scholes solution, the correction terms appear at $O(\varepsilon^{1/2})$ and $O(\varepsilon)$. The optimal hedging strategy is then explicitly obtained for the Scott's model.
THE DURATION OF FIRM-DESTINATION EXPORT RELATIONSHIPS: EVIDENCE FROM SPAIN, 1997-2006
2012
I. INTRODUCTION The traditional trade literature that investigates aggregate trade flows emphasizes the sizeable increase in trade relationships since World War II and the remarkable persistence of trade flows. However, recent microlevel studies point out that under the stable aggregate trade flows there is a rich dynamics at firm- and/or product-level with a high turnover. In fact, international-market presence is often a transitory and an uncommon phenomenon. At any period, only a small percentage of home-based firms participate in trade and exporting firms are different from non-exporters (larger, more productive, etc.). Moreover, there is much persistence in exporting status; being an e…
Integrating transaction cost economics and the resource-based view in services and innovation
2009
[EN] This study examines the complementary nature of Williamson's transaction cost theory and that of the resource-based view in the integration or externalisation of activities, with particular reference to services. Assessing comparative costs, idiosyncratic demands and core competences form the criteria for make or buy decisions, although the analysis of services endows idiosyncratic demands with particular relevance when internalisation of services does neither contribute cost advantages nor others related to the core competences of the firm. In addition to these make or buy questions, this study considers the front/back model in cases where the firm manages services internally.
Vertical integration and profitability of the agrifood industry in an economic crisis context
2015
<p>In a setting of economic and financial crisis, most companies experienced a reduction in their profitability. Thus, our study allows us to identify vertical integration strategies developed by companies to overcome the crisis. This paper is aimed at unveiling the determining factors of the profitability of Spanish agrifood firms, depending on whether they are backwards vertically integrated or not. In order to attain our objective, we implemented a first difference regression model. The main contributions of the article lie in the incorporation of a variable that distinguishes integrated firms from the rest and the separate analysis of the two groups of firms. The results suggest t…
Quantifying trade-offs between ecological gains, economic costs, and landowners' preferences in boreal mire protection.
2021
Private land often encompasses biodiversity features of high conservation value, but its protection is not straightforward. Commonly, landowners’ perspectives are rightfully allowed to influence conservation actions. This unlikely comes without consequences on biodiversity or other aspects such as economic considerations, but these consequences are rarely quantitatively considered in decision-making. In the context of boreal mire protection in Finland, we report how acknowledging landowners’ resistance to protection changes the combination of mires selected to conservation compared to ignoring landowners’ opinions. Using spatial prioritization, we quantify trade-offs arising between the amo…
The value trade-off in higher education service: A qualitative intercultural approach to students’ perceptions
2016
Purpose: Higher Education Institutions (HEIs) have become a highly competitive market, where consumers (i.e. students) are highly involved in their choices, and managers need to focus on competitive edges. This paper aims to understand the factors that influence international Master students’ choice behaviour and fulfil student expectations of customer value in HEIs. Design/methodology: With qualitative information (five focus groups) collected from international students (of 12 different nationalities) of several universities in Spain, UK and China, the paper investigates the formation of customer value as a trade-off between benefits and costs. This qualitative approach aims first at asse…
Sunk cost of local elected representatives in situation of fiscal competition: An example of escalating commitment
2018
Abstract Introduction Competition between French local communities to build infrastructures to attract enterprises and residents could sometimes result in irrational public spending. Objectives Show the influence of psychological factors and the phenomenon of escalating commitment in particular on this type of economic decision. Method We conducted a survey comprising four scenarios which were sent to 285 local elected representatives and we study the impact of the factors “Amount of sunk costs” and “Level of project completion” on two dependent variables, “the desire to complete the project” and “the judgment regarding the quality of the investment”. The scenarios presented a project which…
An economic perspective on crime, its costs, crime fighting and rehabilitation efforts
2010
This study will examine the economic issues surrounding crime and reintegration measures aimed at prisoners, particularly but not exclusively in Germany. To do so it will be necessary to give an overview about the crime and crime-fighting situation in Germany. The focus is on violent and street crime. White collar crime will be mentioned only briefly. The starting point will be to examine the cost of crime and the problems concerning its measurement. These include for example the economic costs of murder or the largely ignored cost of rehabilitating the victims of crimes such as rape. They often suffer from severe trauma. Further it will prove necessary to add the indirect, immaterial costs…
School aspirations, cognitive skills and wage expectations of French Undergraduates
2013
en ligne : http://cemapre.iseg.utl.pt/educonf/2e3/files/submissions_to_web/Bonnard%20Claire_%20Giret%20Jean-Francois_Lambert-Le%20Mener%20Marielle.pdf; This paper aims to study the earnings expectations of first-year students at a French university and to compare them with the observed earnings of young people in the labour market for that same year. Our findings highlight the importance of the environment in which students make their choices about education. Expected earnings are proportionally higher when their parents seem to be involved in the careers guidance, even controlling for the effect of parental socio-economic status. The positive opinion of parents about the orientation or the…