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The law of one price (LOP) broadly asserts that identical financial flows should command the same price. We show that, when properly formulated, LOP is the minimal condition for a well-defined mean-variance portfolio selection framework…

最优化与控制 · 数学 2025-04-16 Aleš Černý , Christoph Czichowsky

I studied the convergence of regional house prices to national prices in USA by analyzing time-series of house price indices of 9 Census Divisions. I found the evidence of the convergence in some parts of the country using asymmetric unit…

风险管理 · 定量金融 2013-06-18 Argyn Kuketayev

Price gap, defined as the logarithmic price difference between the first two occupied price levels on the same side of a limit order book (LOB), is a key determinant of market depth, which is one of the dimensions of liquidity. However, the…

交易与市场微观结构 · 定量金融 2018-02-27 Gao-Feng Gu , Xiong Xiong , Yong-Jie Zhang , Wei Chen , Wei Zhang , Wei-Xing Zhou

We propose a unified mean-field framework that bridges the dynamics of informal financial markets and formal markets governed by Limit Order Books (LOBs). Both settings are modeled as interacting particle systems on a 1D price lattice, with…

统计力学 · 物理学 2025-12-05 Alvaro Navarro-Rubio , Alejandro Lage-Castellanos

Linear Fisher market is one of the most fundamental economic models. The market is traditionally examined on the basis of individual's price-taking behavior. However, this assumption breaks in markets such as online advertising and…

计算机科学与博弈论 · 计算机科学 2024-07-17 Juncheng Li , Pingzhong Tang

Electricity markets often utilize the DC approximation of the AC power flow equations to facilitate solving an otherwise complex nonconvex optimization problem. These DC power flow equations have analogies to DC circuit laws such as…

最优化与控制 · 数学 2024-03-29 Kyri Baker , Harsha Gangammanavar

Price transmission has been studied extensively in agricultural economics through the lens of spatial and vertical price relationships. Classical time series econometric techniques suffer from the "curse of dimensionality" and are applied…

计量经济学 · 经济学 2025-06-18 Mindy L. Mallory , Rundong Peng , Meilin Ma , H. Holly Wang

In this paper, we use a newly constructed dataset to study the geographic distribution of fuel price across the US at a very high resolution. We study the influence of socio-economic variables through different and complementary statistical…

应用统计 · 统计学 2019-11-22 Antonin Bergeaud , Juste Raimbault

Introduction of market mechanisms in distribution systems is currently subject to extensive studies. One of the challenges facing Distribution Market Operators (DMOs) is to implement a fair and economically efficient pricing mechanism that…

系统与控制 · 计算机科学 2017-02-24 Sina Parhizi , Alireza Majzoobi , Amin Khodaei

Adopting a zonal structure of electricity market requires specification of zones' borders. In this paper we use social welfare as the measure to assess quality of various zonal divisions. The social welfare is calculated by Market Coupling…

计算工程、金融与科学 · 计算机科学 2014-05-06 Grzegorz Orynczak , Marcin Jakubek , Karol Wawrzyniak , Michal Klos

Wholesale electricity markets are increasingly integrated via high voltage interconnectors, and inter-regional trade in electricity is growing. To model this, we consider a spatial equilibrium model of price formation, where constraints on…

计量经济学 · 经济学 2018-04-24 Michael Stanley Smith , Thomas S. Shively

Limit order books (LOBs) match buyers and sellers in more than half of the world's financial markets. This survey highlights the insights that have emerged from the wealth of empirical and theoretical studies of LOBs. We examine the…

交易与市场微观结构 · 定量金融 2015-03-17 Martin D. Gould , Mason A. Porter , Stacy Williams , Mark McDonald , Daniel J. Fenn , Sam D. Howison

As distribution systems move towards being more actively managed there is increased potential for regional markets and the application of locational marginal prices (LMPs) to capture spatial variation in the marginal cost of electricity at…

计算工程、金融与科学 · 计算机科学 2019-06-06 Calum Edmunds , Waqquas Bukhsh , Simon Gill , Stuart Galloway

Using discrete choice modelling, the study investigates 946 American consumers willingness-to-pay and preferences for diverse beef products. A novel experiment was used to elicit the number of beef products that each consumer would…

综合经济学 · 经济学 2019-06-18 Ali Ardeshiri , Spring Sampson , Joffre Swait

We consider a periodical equilibrium pricing problem for multiple firms over a planning horizon of T periods. At each period, firms set their selling prices and receive stochastic demand from consumers. Firms do not know their underlying…

计算机科学与博弈论 · 计算机科学 2024-06-07 Yongge Yang , Yu-Ching Lee , Po-An Chen

In order-driven markets, limit-order book (LOB) resiliency is an important microscopic indicator of market quality when the order book is hit by a liquidity shock and plays an essential role in the design of optimal submission strategies of…

交易与市场微观结构 · 定量金融 2018-02-27 Hai-Chuan Xu , Wei Chen , Xiong Xiong , Wei Zhang , Wei-Xing Zhou , H Eugene Stanley

We derive a continuous time model for the joint evolution of the mid price and the bid-ask spread from a multiscale analysis of the whole limit order book (LOB) dynamics. We model the LOB as a multiclass queueing system and perform our…

交易与市场微观结构 · 定量金融 2013-10-07 Jose Blanchet , Xinyun Chen

Algorithmic pricing is increasingly shaping market competition, raising concerns about its potential to compromise competitive dynamics. While prior work has shown that reinforcement learning (RL)-based pricing algorithms can lead to tacit…

机器学习 · 计算机科学 2025-04-09 Sebastián Tinoco , Andrés Abeliuk , Javier Ruiz del Solar

We develop a new market-making model, from the ground up, which is tailored towards high-frequency trading under a limit order book (LOB), based on the well-known classification of order types in market microstructure. Our flexible…

交易与市场微观结构 · 定量金融 2020-01-31 Baron Law , Frederi Viens

Locational Marginal Price (LMP) is a dual variable associated with supply-demand matching and represents the cost of delivering power to a particular location if the load at that location increases. In recent times it become more volatile…

最优化与控制 · 数学 2018-11-07 Shantanu Chakraborty , Remco Verzijlbergh , Milos Cvetkovic , Kyri Baker , Zofia Lukszo
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