According to static models of industrial organization, a rise in competition decreases prices. In this paper, I test whether this conclusion can be reversed in the mobile telecommunications markets where dynamic e ciency e ects might be signi cant. The empirical test relies on the change in the intensity of competition introduced by the entry of the fourth mobile operator in France and the merg...

This paper examines the effects of measurement errors in household shopping plans and price beliefs on the estimates of price elasticities in retail outlet choice. Previous studies parsimoniously use realized purchases as a proxy for unobserved shopping lists and assume homogenous price expectation across all households and over the entire sample period. This measurement error in forecasting ex...

We develop a model in which a profit-maximizing monopolist with uncertain cost of production sells to loss-averse, yet rational, consumers. We first introduce (portable) techniques for analyzing the demand of such consumers, and then investigate the monopolist’s pricing strategy. Compared to lower possible purchase prices, paying a higher price in the firm’s pricing distribution is assessed by ...

The theoretical price of a financial option is given by the expectation of its discounted expiry time payoff. The computation of this expectation depends on the density of the value of the underlying instrument at expiry time. This density depends on both the parametric model assumed for the behaviour of the underlying, and the values of parameters within the model, such as volatility. However ...

We study a novel multi-armed bandit problem that models the challenge faced by a company wishing to explore new strategies to maximize revenue whilst simultaneously maintaining their revenue above a fixed baseline, uniformly over time. While previous work addressed the problem under the weaker requirement of maintaining the revenue constraint only at a given fixed time in the future, the algori...

Content delivery has become an important enterprise on the Internet. There exists a huge demand for bandwidth-intensive, rich multimedia content like news, entertainment services and software. Two key issues associated with any content-delivery system are: revenue and user satisfaction. In this paper, we explore the domain of pricing for content delivery, and how it relates to revenue, and syst...

This study explores how trading constraints such as borrowing and short-sale constraints affect asset prices in the presence of asymmetric information. In a symmetric information environment, borrowing and short-sale constraints exacerbate downward and upward price movements, respectively. However, in the presence of information asymmetry, the price impact of each constraint is different. In an...

C a firm that sells products over repeated seasons, each of which includes a full-price period and a markdown period. The firm may deliberately understock products in the markdown period to induce highvalue customers to purchase early at full price. Customers cannot perfectly anticipate availability. Instead, they use observed past capacities to form capacity expectations according to a heurist...

Businesses offering video-on-demand (VoD) and downloadable-CD sales are growing in the Internet. Batching of requests coupled with a one-to-many delivery mechanism such as multicast can increase scalability and efficiency. There is very little insight into pricing such services in a manner that utilizes network and system resources efficiently while also maximizing the expectation of revenue. I...

A new model on European options with uncertainty of both randomness and fuzziness in output is presented, by introducing fuzzy logic to the stochastic financial model. The randomness and fuzziness in the systems are evaluated by both probabilistic expectation and fuzzy expectation, taking account of seller s/buyer s subjective judgment. Prices of European call/put options with uncertainty are g...