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Electricity market operators worldwide use mixed-integer linear programming to solve the allocation problem in wholesale electricity markets. Prices are typically determined based on the duals of relaxed versions of this optimization…

Computer Science and Game Theory · Computer Science 2023-12-13 Mete Şeref Ahunbay , Martin Bichler , Teodora Dobos , Johannes Knörr

Options have provided a field of much study because of the complexity involved in pricing them. The Black-Scholes equations were developed to price options but they are only valid for European styled options. There is added complexity when…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Michael Maio Pires , Tshilidzi Marwala

While deep neural networks (DNNs) have been increasingly applied to choice analysis showing high predictive power, it is unclear to what extent researchers can interpret economic information from DNNs. This paper demonstrates that DNNs can…

General Economics · Economics 2021-04-06 Shenhao Wang , Qingyi Wang , Jinhua Zhao

Deep neural networks have demonstrated remarkable performance across various domains, yet their decision-making processes remain opaque. Although many explanation methods are dedicated to bringing the obscurity of DNNs to light, they…

Computer Vision and Pattern Recognition · Computer Science 2025-12-17 Kanglong Fan , Yunqiao Yang , Chen Ma

Artificial intelligence (AI) systems utilizing deep neural networks (DNNs) and machine learning (ML) algorithms are widely used for solving important problems in bioinformatics, biomedical informatics, and precision medicine. However,…

Quantitative Methods · Quantitative Biology 2023-02-24 Md. Rezaul Karim , Tanhim Islam , Oya Beyan , Christoph Lange , Michael Cochez , Dietrich Rebholz-Schuhmann , Stefan Decker

Tabular data is the foundation of many applications in fields such as finance and healthcare. Although DNNs tailored for tabular data achieve competitive predictive performance, they are blackboxes with little interpretability. We introduce…

Machine Learning · Computer Science 2026-03-27 Khawla Elhadri , Jörg Schlötterer , Christin Seifert

Artificial intelligence is creating one of the biggest revolution across technology driven application fields. For the finance sector, it offers many opportunities for significant market innovation and yet broad adoption of AI systems…

Risk Management · Quantitative Finance 2022-12-07 Marc Wildi , Branka Hadji Misheva

Reasonable pricing of data products enables data trading platforms to maximize revenue and foster the growth of the data trading market. The textual semantics of data products are vital for pricing and contain significant value that remains…

Computational Engineering, Finance, and Science · Computer Science 2026-02-24 Ruize Gao , Feng Xiao , Jinpu Li , Shaoze Cui

Stable operation of the electrical power system requires the power grid frequency to stay within strict operational limits. With millions of consumers and thousands of generators connected to a power grid, detailed human-build models can no…

Systems and Control · Electrical Eng. & Systems 2022-01-07 Johannes Kruse , Benjamin Schäfer , Dirk Witthaut

Price-based demand response (DR) of heating, ventilating, and air-conditioning (HVAC) systems is a challenging task, requiring comprehensive models to represent the building thermal dynamics and game theoretic interactions among…

Systems and Control · Electrical Eng. & Systems 2020-12-15 Youngjin Kim

Deep learning models are being increasingly applied to imbalanced data in high stakes fields such as medicine, autonomous driving, and intelligence analysis. Imbalanced data compounds the black-box nature of deep networks because the…

Machine Learning · Computer Science 2022-12-16 Damien A. Dablain , Colin Bellinger , Bartosz Krawczyk , David W. Aha , Nitesh V. Chawla

The growing importance of intraday electricity trading in Europe calls for improved price forecasting and tailored decision-support tools. In this paper, we propose a novel generative neural network model to generate probabilistic path…

Applications · Statistics 2025-06-03 Jieyu Chen , Sebastian Lerch , Melanie Schienle , Tomasz Serafin , Rafał Weron

Recent advancements in signal processing and machine learning domains have resulted in an extensive surge of interest in deep learning models due to their unprecedented performance and high accuracy for different and challenging problems of…

Computer Vision and Pattern Recognition · Computer Science 2018-03-01 Atefeh Shahroudnejad , Arash Mohammadi , Konstantinos N. Plataniotis

Recent studies concerning the point electricity price forecasting have shown evidence that the hourly German Intraday Continuous Market is weak-form efficient. Therefore, we take a novel, advanced approach to the problem. A probabilistic…

Statistical Finance · Quantitative Finance 2021-02-02 Michał Narajewski , Florian Ziel

Deep Neural Networks are, from a physical perspective, graphs whose `links` and `vertices` iteratively process data and solve tasks sub-optimally. We use Complex Network Theory (CNT) to represents Deep Neural Networks (DNNs) as directed…

Machine Learning · Computer Science 2022-09-14 Emanuele La Malfa , Gabriele La Malfa , Claudio Caprioli , Giuseppe Nicosia , Vito Latora

Rapid development of advanced modelling techniques gives an opportunity to develop tools that are more and more accurate. However as usually, everything comes with a price and in this case, the price to pay is to loose interpretability of a…

We apply supervised deep neural networks (DNNs) for pricing and calibration of both vanilla and exotic options under both diffusion and pure jump processes with and without stochastic volatility. We train our neural network models under…

Pricing of Securities · Quantitative Finance 2019-02-18 Ali Hirsa , Tugce Karatas , Amir Oskoui

Several approaches have been proposed to forecast day-ahead locational marginal price (daLMP) in deregulated energy markets. The rise of deep learning has motivated its use in energy price forecasts but most deep learning approaches fail to…

Machine Learning · Computer Science 2020-10-14 Dipanwita Saha , Felipe Lopez

We introduce a new and highly tractable structural model for spot and derivative prices in electricity markets. Using a stochastic model of the bid stack, we translate the demand for power and the prices of generating fuels into electricity…

Pricing of Securities · Quantitative Finance 2015-05-27 Rene Carmona , Michael Coulon , Daniel Schwarz

While deep learning models have demonstrated remarkable success in numerous domains, their black-box nature remains a significant limitation, especially in critical fields such as medical image analysis and inference. Existing…

Machine Learning · Computer Science 2025-05-13 David Zucker