Traditional approaches to multipath routing ignore the economic incentives necessary in aligning both networks and users towards a common goal. While theory suggests congestion pricing can be used to maximize social welfare, even within such a framework we have no consistent method for evaluating, constructing and disseminating paths. Our research focuses on building on existing congestion pric...

Revenue management (RM) brings rational approaches to pricing for goods and/or services with a limited shelf life. The practice of dynamically pricing a perishable product across different market segments continues to be applied across an ever-increasing set of business arenas. While numerous consulting and software development firms preach the bottom line impacts of RM practice, little effort ...

Two of the authors (DE and PW) recently introduced a non-probabilistic spot interest rate model. The key concepts in this model are the non-diffusive nature of the spot rate process and the uncertainty in the parameters. The model assumes the worst possible outcome for the spot rate path when pricing a fixed-income product. The model differs in many important ways from the traditional approache...

This position paper argues for research in the development of focused solutions for dynamic pricing, service-level agreements and negotiation for eServices in a digital economy. Thereby the authors have a main focus on the development of an independent negotiation protocol, which satisfies the needs and preferences of customers and service providers, also with a certain focus on legal aspects o...

The price that a regulated access provider charges for shifting customers between service providers has significant welfare implications. Typical regulatory approaches to pricing, such as pricing based on fully allocated cost or incremental cost, ignore the characteristics of consumer demand. A theoretical alternative, Ramsey pricing, considers only the elasticity of demand for given products. ...

In the insurance industry, spreadsheets have emerged as an invaluable tool to for product pricing, because it is relatively straightforward to create and maintain complex pricing models using Excel®. In fact, Excel is often preferred to “hard-code” whenever there are frequent changes to the calculations and business logic which under-pin the pricing of an insurance product. However, problems ar...

The pricing of collateralized debt obligations and other basket credit derivatives is contingent upon (i) a realistic modeling of the firms’ default times and the correlation between them, and (ii) efficient computational methods for computing the portfolio loss distribution from the individual firms’ default time distributions. Factor models, a widelyused class of pricing models, are computati...