Pricing of point-to-point bandwidth contracts

Jussi Keppo ()

Mathematical Methods of Operations Research, 2005, vol. 61, issue 2, 218 pages

Abstract: In this paper we consider the pricing of point-to-point bandwidth leasing contracts and options. The underlying asset of these contracts is a point-to-point telecommunications connection. Due to the network structure the network capacity prices depend nonlinearly on each other. A leasing contract on a point-to-point connection can be seen as an option because the seller of the connection selects the cheapest path between the points. Therefore, a bandwidth option is a compound option. Copyright Springer-Verlag 2005

Keywords: Bandwidth; Network; Leasing contract; Option pricing; Real option (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1007/s001860400401 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:mathme:v:61:y:2005:i:2:p:191-218

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/00186

DOI: 10.1007/s001860400401

Access Statistics for this article

Mathematical Methods of Operations Research is currently edited by Oliver Stein

More articles in Mathematical Methods of Operations Research from Springer, Gesellschaft für Operations Research (GOR), Nederlands Genootschap voor Besliskunde (NGB)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().