Related papers: A Mathematical Reformulation of the Reference Pric…
As a firm varies the price of a product, consumers exhibit reference effects, making purchase decisions based not only on the prevailing price but also the product's price history. We consider the problem of learning such behavioral…
We consider a dynamic pricing problem where customer response to the current price is impacted by the customer price expectation, aka reference price. We study a simple and novel reference price mechanism where reference price is the…
This study addresses the interpretable estimation of price bounds in the context of price optimization. In recent years, price-optimization methods have become indispensable for maximizing revenue and profits. However, effective application…
Reference models in form of best practices are an essential element to ensured knowledge as design for reuse. Popular modeling approaches do not offer mechanisms to embed reference models in a supporting way, let alone a repository of it.…
It is well established that formulating an effective constraint model of a problem of interest is crucial to the efficiency with which it can subsequently be solved. Following from the observation that it is difficult, if not impossible, to…
Price-based revenue management is an important problem in operations management with many practical applications. The problem considers a retailer who sells a product (or multiple products) over $T$ consecutive time periods and is subject…
We investigate the value of extending the completeness of a decision model along different dimensions of refinement. Specifically, we analyze the expected value of quantitative, conceptual, and structural refinement of decision models. We…
This paper presents a convenient framework for modeling default process and pricing derivative securities involving credit risk. The framework provides an integrated view of credit valuation adjustment by linking distance-to-default,…
In this paper we present a calculus for re nement of business process models based on a precisede nition of business processes and process nets Business process models are a vital concept for communicating with experts of the application…
We study a large economy in which firms cannot compute exact solutions to the non-linear equations that characterize the equilibrium price at which they can sell future output. Instead, firms use polynomial expansions to approximate prices.…
The paper studies sub and super-replication price bounds for contingent claims defined on general trajectory based market models. No prior probabilistic or topological assumptions are placed on the trajectory space, trading is assumed to…
Evaluating the financial performance of manufacturing firms requires consideration of both the time value of money and the relative importance of multiple decision criteria. Conventional approaches relying solely on deterministic…
Software reuse allows the software industry to simultaneously reduce development cost and improve product quality. Reuse of early-stage artifacts has been acknowledged to be more beneficial than reuse of later-stage artifacts. In this…
In this paper, we argue that the prevailing approach to training and evaluating machine learning models often fails to consider their real-world application within organizational or societal contexts, where they are intended to create…
The clarion call for causal reduction in the study of capital markets is intensifying. However, in self-referencing and open systems such as capital markets, the idea of unidirectional causation (if applicable) may be limiting at best, and…
In general it is not clear which kind of information is supposed to be used for calculating the fair value of a contingent claim. Even if the information is specified, it is not guaranteed that the fair value is uniquely determined by the…
Regression plays a key role in many research areas and its variable selection is a classic and major problem. This study emphasizes cost of predictors to be purchased for future use, when we select a subset of them. Its economic aspect is…
Pricing decisions of companies require an understanding of the causal effect of a price change on the demand. When real-life pricing experiments are infeasible, data-driven decision-making must be based on alternative data sources such as…
Reference analysis produces objective Bayesian inference, in the sense that inferential statements depend only on the assumed model and the available data, and the prior distribution used to make an inference is least informative in a…
Many of today's online services provide personalized recommendations to their users. Such recommendations are typically designed to serve certain user needs, e.g., to quickly find relevant content in situations of information overload.…