The model of optimal pricing for assets based on the Partial Distribution and its empirical research

Author

Dai, Feng ; Liu, Hui ; Qin, Zi-fu

Author_Institution

Zhengzhou Inf. Eng. Univ., Henan, China

fYear

2003

fDate

2-4 Nov. 2003

Firstpage

311

Lastpage

315

Abstract

We give the concepts and the expressions of the Partial Distribution and Partial Process in this paper, and the way of estimating the parameters in Partial Distribution. Based on the Partial Distribution, we put forward a new kind of pricing method for assets (capitals, stocks or commodities), and present the model of optimal pricing (MOP) on the method. Also, we give some examples to show that the Partial Distribution is, at sometimes, better than the lognormal distribution used commonly in describing the behavior of stock prices, and that the pricing result, calculated by MOP, is better than any of other pricing result.

Keywords

log normal distribution; optimisation; parameter estimation; partial differential equations; pricing; share prices; stock markets; assets pricing; commodity; log normal distribution; optimal pricing; parameter estimation; partial distribution; partial process; stock prices; Costs; Fluctuations; Forward contracts; Gaussian distribution; Marketing and sales; Modems; Parameter estimation; Pricing; Risk management;

fLanguage

English

Publisher

ieee

Conference_Titel

Engineering Management Conference, 2003. IEMC '03. Managing Technologically Driven Organizations: The Human Side of Innovation and Change

Print_ISBN

0-7803-8150-5

Type

conf

DOI

10.1109/IEMC.2003.1252283

Filename

1252283