As the generalizations of mathematical expectations,coherent and convex risk measures, Choquet expectation and Peng’s g-expectations all have been widely used to study the question of hedging contingent claims in incomplete markets. Obviously, the different risk measures or expectations will typically yield different pricing. In this paper we investigate differences amongst these risk measures ...

In this paper, we utilize admission control algorithms designed for revenue optimization with QoS guarantees to derive optimal pricing of multiple service classes in wireless cellular networks. A service provider typically adjusts pricing only periodically. Once a ‘‘global” optimal pricing is derived, it would stay static for a period of time, allowing users to be charged with the same rate whi...

This paper deals with the following question associated with congestion pricing in a general network with either fixed or elastic travel demand: what is the maximum efficiency loss of a general second-best pricing scheme due to inexact marginal-cost pricing in comparison with the first-best pricing or system optimum case? A formal answer to this question is provided by establishing an inefficie...

Increased availability of high-quality customer information has fueled interest personalized pricing strategies, i.e., strategies that predict an individual customer’s valuation for a product and then o↵er a customized price tailored to that customer. While the appeal of personalized pricing is clear, it may also incur large costs in the form of market research, investment in information techno...

The current situation in the Internet service provider market shows that Internet service providers (ISPs) are still struggling to find sustainable business models. The challenge for them is to find the right prices and pricing plans for their network services. In order to satisfy business objectives, prices and pricing plans have to be designed such that they are attractive to end-users but al...

Past research in marketing and psychology suggests that pricing structure may influence consumers’ perception of value. In the context of two commonly used pricing schemes, pay-peruse and two-part tariff, we evaluate the impact of pricing structure on consumer preferences for access services. To this end, we develop a utility-based model of consumer retention and usage of a new service. A notab...

In this paper, we develop and test asset pricing model formulations that are simultaneously conditional and nonlinear. Formulations based upon five popular asset pricing models are tested against the widely studied Fama and French (1993) twenty-five size and book-tomarket sorted portfolios. Test results indicate that the conditional nonlinear specification of the Fama and French (1993) three st...

One of the biggest obstacles for implementing congestion pricing is the pricing time-scale. The Internet traffic is highly variant and hard to control without a mechanism that operates on very low time-scales, i.e. on the order of round-trip-times (RTTs). However, pricing naturally operates on very large time-scales because of human involvement. So, in order to put tight control on congestion t...

[email protected], [email protected] Abstract— Several congestion pricing proposals have been made in the last decade. Usually, however, those proposals studied optimal strategies and did not focus on implementation issues. Our main contribution in this paper is to address implementation issues for congestion-sensitive pricing over a single domain of the differentiated-services (diff-serv) ...