Related papers: Optionality and Convexity in ICT Networks
This paper explores the economic underpinnings of open sourcing advanced large language models (LLMs) by for-profit companies. Empirical analysis reveals that: (1) LLMs are compatible with R&D portfolios of numerous technologically…
In the era of the big data, we create and collect lots of data from all different kinds of sources: the Internet, the sensors, the consumer market, and so on. Many of the data are coming sequentially, and would like to be processed and…
We analyse two models of liquidity provision to determine the retail traders' preference for marketable order routing. Order internalization is captured by a model of market makers competing for the retail order flow in a Bertrand fashion.…
How do inter-organizational networks emerge? Accounting for interdependence among ties while studying tie formation is one of the key challenges in this area of research. We address this challenge using an equilibrium framework where firms'…
We study the self-assembly of a complex network of collaborations among self-interested agents. The agents can maintain different levels of cooperation with different partners. Further, they continuously, selectively, and independently…
In [1] Zawadoski introduces a banking network model in which the asset and counter-party risks are treated separately and the banks hedge their assets risks by appropriate OTC contracts. In his model, each bank has only two counter-party…
Offchain networks provide a promising solution to overcome the scalability challenges of cryptocurrencies. However, design tradeoffs of offchain networks are still not well-understood today. In particular, offchain networks typically rely…
Computation offloading is often used in mobile cloud, edge, and/or fog computing to cope with resource limitations of mobile devices in terms of computational power, storage, and energy. Computation offloading is particularly challenging in…
We study the problem of pricing under a Multinomial Logit model where we incorporate network effects over the consumer's decisions. We analyse both cases, when sellers compete or collaborate. In particular, we pay special attention to the…
The study of mechanisms for multi-sided markets has received an increasingly growing attention from the research community, and is motivated by the numerous examples of such markets on the web and in electronic commerce. Many of these…
How do supply and demand from informed traders drive market prices of bitcoin options? Deribit options tick-level data supports the limits-to-arbitrage hypothesis about the market maker's supply. The main demand-side effects are that…
After a brief review of option pricing theory, we introduce various methods proposed for extracting the statistical information implicit in options prices. We discuss the advantages and drawbacks of each method, the interpretation of their…
Social marketing is becoming increasingly important in contemporary business. Central to social marketing is quantifying how consumers choose between alternatives and how they influence each other. This work considers a new but simple…
The ubiquity of smartphones has fueled content consumption worldwide, leading to an ever-increasing demand for a better Internet experience. This has necessitated an upgrade of the capacity of the access network. The Internet service…
Resiliency plays a critical role in designing future communication networks. How to make edge computing systems resilient against unpredictable failures and fluctuating demand is an important and challenging problem. To this end, this paper…
Reliability Options are capacity remuneration mechanisms aimed at enhancing security of supply in electricity systems. They can be framed as call options on electricity sold by power producers to System Operators. This paper provides a…
Customer loyalty is crucial for internet services since retaining users of a service to ensure the staying time of the service is of significance for increasing revenue. It demands the retention of customers to be high enough to meet the…
Some online advertising offers pay only when an ad elicits a response. Randomness and uncertainty about response rates make showing those ads a risky investment for online publishers. Like financial investors, publishers can use portfolio…
We consider multi-commodity network design models, where capacity can be added to the arcs of the network using multiples of facilities that may have different capacities. This class of mixed-integer optimization models appears frequently…
As mobile traffic is dominated by content services (e.g., video), which typically use recommendation systems, the paradigm of network-friendly recommendations (NFR) has been proposed recently to boost the network performance by promoting…