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Using Partial Differential Equations For Pricing Of Goods And Services

Author

Listed:
  • Metodi TRAYKOV
  • Miglena TRENCHEVA
  • Radoslav MAVREVSKI
  • Anton STOILOV
  • Ivan TRENCHEV

Abstract

This article is based on the methodology of comparative analysis, using an innovative approach for pricing of various goods and services. Benchmarking is the continuous search to find and adapt better pricing methods that leading to increased profits. We will consider the numerical solution of partial differential equations, based on Black-Scholes model for pricing of goods and services within European option. Also, we will present formulation and numerical behavior of explicit and implicit methods that can be use in pricing for company assets within European option. JEL Codes - Y80

Suggested Citation

  • Metodi TRAYKOV & Miglena TRENCHEVA & Radoslav MAVREVSKI & Anton STOILOV & Ivan TRENCHEV, 2016. "Using Partial Differential Equations For Pricing Of Goods And Services," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 63(2), pages 291-298, July.
    • Handle: RePEc:aic:saebjn:v:63:y:2016:i:2:p:291-298:n:37
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    File URL: http://saeb.feaa.uaic.ro/index.php/saeb/article/view/1019
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    References listed on IDEAS

    as
    1. Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-654, May-June.
    2. Brennan, M J & Schwartz, Eduardo S, 1977. "Convertible Bonds: Valuation and Optimal Strategies for Call and Conversion," Journal of Finance, American Finance Association, vol. 32(5), pages 1699-1715, December.
    3. Jaksa Cvitanic & Fernando Zapatero, 2004. "Introduction to the Economics and Mathematics of Financial Markets," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262532654, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    partial differential equations; economics; pricing; goods; services;
    All these keywords.

    JEL classification:

    • Y80 - Miscellaneous Categories - - Related Disciplines - - - Related Disciplines

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